DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5

Megabrew A Boon For Bankers, Lawyers With $2 Billion In Expenses

By Steve Wynne-Jones
Share this article
Megabrew A Boon For Bankers, Lawyers With $2 Billion In Expenses

Banks, law firms, accountants, public relations companies and the tax man are lining up for about $2 billion in fees and expenses from Anheuser-Busch InBev NV’s $103.8 billion takeover of rival SABMiller Plc.

AB InBev will pay out $1.74 billion, the company said in a statement Friday. That includes: $725 million for financing arrangements Up to $135 million for financial and corporate broking advice split by advisers including Lazard Ltd., Deutsche Bank AG, Barclays Plc, BNP Paribas SA, Bank of America Corp. and Standard Bank Group Ltd. As much as $185 million for legal advice to firms including Freshfields Bruckhaus Deringer LLP $15 million to the accountants $20 million for public relations advice from Brunswick Group $180 million for other professional services, such as management consultants $475 million for transaction taxes, other costs and expenses.

SABMiller will pay $202 million in fees including: $113 million for financial and broking advice to banks led by financial advisory boutique Robey Warshaw LLP, along with JPMorgan Chase & Co., Morgan Stanley, Goldman Sachs Group Inc. and Centerview Partners $76 million for legal advice from law firms including Linklaters LLP $2 million to the accountants $9 million for public relations work from Finsbury $2 million for other costs and expenses.

The deal is the latest win this year for British bank Robey Warshaw. The company also advised Softbank Group Corp. on its acquisition of U.K. semiconductor designer ARM Holdings Plc as well as London Stock Exchange Group Plc on its merger with Deutsche Boerse AG.

As part of the deal, AB InBev also expects to cut about 3 percent of the combined company’s workforce in the next three years, it said in documents related to the acquisition published Friday. That amounts to about 5,500 jobs, a person familiar with the matter said. The job cuts will form part of the $1.4 billion of annual savings that AB InBev has said it’s seeking from the takeover.

ADVERTISEMENT

Last month, SABMiller’s board unanimously recommended AB InBev’s improved takeover offer, paving the way for the biggest acquisition in the history of the beer industry.

News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.