Diageo and SABMiller Climb on Merger Talk

SABMiller Diageo MergerSource: Interactive Investor

Shares in Diageo (DGE) and SABMiller (SAB) continued to rise on speculation that the companies will merge, creating a drinks group worth over £100 billion and putting paid to a rumoured bid from drinks giant AB Inbev.

The Peroni and Grolsch-maker SABMiller, the larger of the two with a market capitalisation of around £54 billion, is said to be contemplating a deal with Smirnoff and Baileys manufacturer Diageo to ward off AB Inbev which could be interested in using Diageo's beer business as a platform for further access to Africa.

The companies have previously worked together on corporate deals, such as in 2007 when they looked at carving up Scottish & Newscastle.

Diageo shares rose 1.2% to 1,888p in early trading from a 52-week low of 1,768p, while SAB was up 0.15% to 3,394p from a 52-week low of 2,661p.

. . .

To continue reading go to Interactive Investor

Read more on

Suggested Articles

There was a time when the Las Vegas downtown district was blighted, unsafe and by no means a desirable place to live or work. But that was then!

The holiday season means ringing registers. As you prepare for holiday rushes and 2020, consider what your payment processor is really doing for you.

Excess inventory ties up capital better used elsewhere, uses valuable physical space, and can encourage theft.