Brexit has made beer's mega-merger more expensive

AB InBev has been forced to up its offer...

Brexit has made beer's mega-merger more expensive

Joerg Sarbach / AP

Anheuser-Busch InBev has raised its offer to takeover rival SABMiller to £79bn (€94bn) following currency fluctuations in the wake of the Brexit vote.

The companies are the two largest producers of beer in the world - if the deal is completed one out of every three pints of beer sold around the world will come from the merged entity.

The bumped-up offer reflects investor concerns over the value of the deal falling due to currency movements following the UK's decision to leave the EU.

In a statement AB InBev said that the deal will give each SABMiller shareholder £45 per share in cash - or a stock alternative valued at £51.14 which can be traded after five years.

SABMiller also released a statement saying that the chairmen of both companies met on Friday of last week, to discuss the takeover "in light of recent exchange rate volatility and market movements."

US antitrust regulators approved the merger after AB InBev committed to divesting SABMiller’s entire US business, including its MillerCoors stakes.

AB InBev has already agreed to sell SAB's European stake in MillerCoors and its Peroni, Grolsch and Meantime brands.