A third of the world's beer will soon be made by one company. According to Bloomberg, AB InBev and SABMiller — the world's two largest beer makers — are merging. SABMiller, which makes brands like Miller Lite and Peroni, rejected AB InBev's takeover offer of $104 billion last week. The company decided to hold out for more money, saying that the deal "substantially undervalued the brewer."
However, AB InBev, which makes Budweiser and Stella Artois, upped its offer by nearly $2 billion, and SABMiller's board is now "prepared to recommend the offer." The two companies have until October 28 to finalize the details and sign the formal agreement. Bloomberg notes that this deal is the biggest of 2015.
The merger has large implications for the beer industry. The main reason AB InBev offered to buy SABMiller is due to its stronghold in Latin America and Africa, regions where AB InBev has little to no presence, notes the Wall Street Journal. The new company will be a mega conglomerate controlling over 30 percent of the entire global beer market. Together AB InBev and SABMiller are worth over $276 billion.