Anheuser-Busch has confirmed that it approached SABMiller’s board of directors about joining the two companies together. The board also confirmed that this happened, but advises shareholders not to sell their stock in the company. BUD says it wants to work with the board for the transaction, reports New York Times.
Anheuser-Busch and SABMiller may face regulatory issues if they attempt to merge. The combined company would have both the Budweiser and Miller Lite under its belt. It would also have roughly 75% hold on the U.S. beer market. The combined company would have a stock market value of more than $276 billion, NYT notes.
It’s unknown when, or if, an official offer for SABMiller will be made by Anheuser-Busch. However, investors will likely know by Oct. 14, which is the cut-off date for BUD to make an offer under U.K. rules, reports Fox News.
BUD shares were up 6% as of Wednesday afternoon.