Are AB InBev to Merge with SABMiller?
Today is the day when both AB InBev and SABMiller, two of the biggest companies in the beer and alcohol market place need to agree terms in regards to them merging to make one of the largest companies in that sector.
They have until 5pm to come to an agreement which will see the value of the takeover being a huge £68billion. That does of course mean that if you are a Binary Options trader you are likely to see the share values of those two companies fluctuating wildly throughout the day, as other traders try and make their predictions as to whether a deal will be agreed or not.
AB InBev are best known for their Budweiser brand and SABMiller for their Peroni brand, and they have been trying to come to an agreement for quite a while now in regards to merging their companies into one super brand.
In fact the proposed deal has gone into overtime with them being given an extra week to come to an agreement on the terms of the deal by regulators, and there have been many traders cashing in all week on their fluctuating share prices.
If the terms can finally be agreed this will be one of the top five mergers in history of any UK based company, and many industry experts are commentating that an agreement will be finalised before the 5pm deadline today.
One of the most likely causes in regards to the delay in them reaching an agreement will be how to take the newly formed company forward, more so in regards to competition issues in regards to some of the countries they supply their products too.
This may see them having to sell off some of their smaller brands in an attempt to keep regulators happy, and whilst that may see a slight downturn in their operating profits, a newly formed company will of course be able to make some very large cost savings by combining their marketing efforts and production of their brands.
It is worth noting that whilst no job losses have been proposed their combined workforces are all keeping a close eye on the finer points in regards to this proposed merger. As mentioned the deadline is 5pm tonight in regards to them agreeing to terms and there could be a very good chance the talks will go to the wire.
