The two largest breweries in the world have agreed to a merger.
According to a press release, Anheuser-Busch InBev has agreed in principle to purchase SABMiller for $104 billion. The combined company would be the largest in the world by a fair margin, with sales of approximately $55 billion, and would produce nine of the worlds top 20 beers sold by volume.
However, the deal still has numerous obstacles to overcome, including SABMiller’s shareholders and approval by American and European regulators, which would force the company to sell some of its assets in order to move the agreement forward.
Both companies are no stranger to aquaistions, but AB-InBev and SABMiller have had very different strategies when it comes to craft beer.
While SABMiller has had virtually no interest in smaller beer companies other than its purchase of Britain’s Meantime Brewing Co. in May, AB-InBev has acquired five different craft breweries since 2011: Chicago, Ill.-based Goose Island Beer Co. in 2011, New York, N.Y.-based Blue Point Brewing and Bend, Ore.-based 10 Barrel Brewing in 2014, Seattle, Wash.-based Elysian Brewing Co. earlier this year and Los Angeles, Calif.-based Golden Road Brewing last month.