U.K.’s panel on takeovers and mergers has granted Anheuser-Busch InBev and SABMiller another extension to give the world’s two biggest brewers more time to finalize the terms of a megadeal worth a little over $100 billion.
The companies have already a few extensions as talks lengthen between the companies, which agreed “in principle” on the key terms of a takeover bid from AB InBev. In a joint statement on Wednesday, the companies said they have made “good progress” but also requested the U.K. panel extend the deal deadline to 5 p.m. London time on Wednesday, November 11.
By that point, AB InBev is required to make a firm offer (although it could potentially seek yet another extension).
AB InBev has completed its due diligence review of SABMiller and confirmed that facilities are set to support the cash components of the possible offer. The brewers also say they’ve made “good progress” in agreeing to terms of the possible offer.
If the deal were to go through, it would combine AB InBev’s (BUD) Budweiser, Stella Artois, and Beck’s brands with SABMiller’s Miller, Coors, and Peroni.
U.S. regulators will almost certainly not allow the brands to merge domestically, as the deal would combine AB InBev’s 45% U.S. market share with SABMiller’s joint venture MillerCoors, which commands 26% of the business. Divestitures will be needed, mostly likely landing in the lap of Molson Coors (TAP) – the other partner of the MillerCoors venture.