South African Breweries is set to buy Miller Brewing from owner Philip Morris - SAB - Brand Scorecard

Cheers, July-August, 2002

In a widely anticipated move, South African Breweries (SAB) is set to buy Miller Brewing from owner Philip Morris, which will create the world's second largest beer group (behind Anheuser Busch), for $5.6 billion US. The deal is expected to close in July, pending regulatory approval, said Miller parent company Philip Morris.

The deal will give Philip Morris a 36% interest in SABMiller. The group will be headquartered in London but will continue operating Miller's seven US breweries. Some analysts have said SAB may have overpaid, with many expecting Miller to go for only US$5 billion. No changes in Miller's US distribution activity is currently expected, but as SAB owns Pilsner Urquell, among other brands, some anticipate help for the Czech beer in the US market.