SABMiller moves to sell Coors joint venture stake in preparation for AB InBev 'Megabrew' merger

In an attempt to smooth the process for the merger between Anheuser-Busch InBev and SABMiller, the latter beermaker is trying to sell its stake in MillerCoors, which is a joint venture with Canadian brewer Molson Coors.

The move is aimed at reassuring US antitrust regulators, who could throw a spanner in the works of the tie-up because of possible competition breaches. According to the Financial Times, SABMiller is in talks with Molson Coors to sell the 58% stake, as AB InBev and SABMiller close in on a £68bn to £70bn deal.

Competition regulators are concerned because the merged firm, already dubbed "Megabrew", would have a revenue worth more than a third of the world's beer market.

The agreement, at around £44 (€59.5, $67.6) per share in cash for SABMiller investors, is one of the biggest mergers ever. In October, it was revealed that the deadline for AB InBev to come up with the final offer had been extended to 4 November.

Molson Coors, in turn, is set to report its quarterly results on 5 November. The North American firm owns around 42% of the MillerCoors venture and is the first and final bidder, as the only other shareholder.

AB InBev has also made moves to dispose of US assets in an attempt to please antitrust regulators. According to analysts, Molson Coors is seen as a favourite to take control over AB InBev's US operations, while some have coined Heineken as another potential candidate. Meanwhile, a deal between Coors and Heineken in response to Megabrew is seen as an option.