Anheuser-Busch Looking To Make Major Business Merger
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Thursday, October 8, 2015.
When making a business transaction, it is important that all parties involved are happy with the terms of the agreement. Many times this can take several tries to negotiate the right terms to make a good business deal in California. This can be particularly true during a large business merger, as Anheuser-Busch InBev has found it.
The company is currently attempting to acquire its main rival SABMiller. Anheuser-Busch had just made an offer to purchase the company for $64.34 per share, which would amount to more than $104 billion. This is over 40 percent more than SABMiller's share price prior to talks of a merger initiated in September. However, SABMiller has rejected the offer, saying that the valuation is still well below their view of the value of the company.
This is not the first time SABMiller has rejected an acquisition offer. Anheuser-Busch has already submitted two proposals prior. Both proposals, valued at $61.07 and $58 per share, were rejected by SABMiller. The board of SABMiller unanimously rejected the first two bids, however the latest bid was rejected with a split vote.
Regardless, when the price is finally agreed upon for the business merger, the two parties will still have to go through the proper legal process in order to make the acquisition official and legal. This is also true for any acquisition in California, no matter what the size. This will require correctly filling out the proper paperwork and then submitting it to the appropriate regulatory agencies. Also, all related contracts will need to have the proper legal language to solidify the deal.
Source: CNN, "SABMiller rejects AB InBev's takeover bid, but 'Bud-Miller' is not over yet", Ivana Kottasova and Sophia Yan, Oct. 7, 2015