South African Breweries is to buy Miller Brewing from owner Philip Morris to create the world's second largest beer group behind Anheuser Busch, for $5.6 billion

Food & Drink Weekly, June 10, 2002

South African Breweries (SAB) is to buy Miller Brewing from owner Philip Morris to create the world's second largest beer group behind Anheuser Busch, for $5.6 billion. The new concern will be called SABMiller. The deal is expected to close in July, pending regulatory approval, said Miller parent company Philip Morris Cos.

London-based South African Breweries is paying $3.6 billion in shares to Miller's owner, Philip Morris, and taking on Miller debt of $2 billion. The deal will give U.S. Marlboro cigarette and Kraft food group Philip Morris a 36% economic interest in SABMiller. The group will be headquartered in London but will continue operating Miller's seven U.S. breweries.