SABMiller has accepted a $104 billion takeover bid from InBev AB.
This was the fifth offer made to the adult beverage company. AB InBev said it was willing in principle to pay 44 pounds in cash per SABMiller share, with a partial share alternative set at a discount and limited to 41 percent of the SABMiller shares.
SABMiller has requested a two-week extension to the deadline set for its rival to announce a firm intention to bid. The new deadline is October 28.
As part of the deal AB InBev will pay a $3 billion break fee to SABMiller in the event that the transaction falls apart because of internal or regulatory measures.
The new deal surpasses a 43.50 pounds cash deal offered on Monday.
The partial share alternative remains, designed for SABMiller’s two main shareholders, cigarette-maker Altria and the BevCo company of Colombia’s Santo Domingo family, who own 40.5 percent of the UK-based brewer.
The newly formed company would brew nearly one-third of the world’s beer, combining AB InBev’s Budweiser, Stella Artois and Corona lagers with SABMiller’s Peroni, Grolsch and Pilsner Urquell.
The merger would also allow both company’s to extend their reach into new territories.
Traditional big box brewers are facing intense competition from smaller craft beer manufacturers who are rapidly eating into market share.