UK: SABMiller is unlikely to make a bid for Anheuser-Busch

SABMiller Plc. is unlikely to make a bid for Anheuser-Busch Cos Inc., which is facing an unsolicited takeover offer from rival brewer InBev SA., because there is little scope for cost cuts at the U.S. company, SABMiller Chief Executive Graham Mackay told Handelsblatt in an interview, Thomson Financial related on June 23rd.

It would be 'very difficult' for SABMiller to intervene in the takeover, regardless of the price, Mackay told the German business daily.

Buyers in the global brewery market have to show they can run a takeover target more efficiently than current management, which would be difficult in the case of Anheuser-Busch because it was until recently regarded as one of the world's most competitive brewers, the CEO said.

The industry has little experience in creating and managing truly global beer brands, which makes it even harder to realize synergies, he added.

InBev would have a hard time winning over SABMiller shareholders, should InBev fail to take over its U.S. rival and turn to SABMiller instead, Mackay said, adding InBev would have to offer a 'very high' price.

25 June, 2008