Beer Company Takeover: Megabrew merge boon for bankers, lawyers
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's $103.8 billion takeover of rival SABMiller.
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, Deutsche Bank, Barclays, BNP Paribas Bank of America and Standard Bank Group;
• As much as $185 million for legal advice to firms including Freshfields Bruckhaus Deringer;
• $15 million to the accountants;
• $20 million for public relations advice from Brunswick Group; and
• $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, along with JPMorgan Chase, Morgan Stanley, Goldman Sachs and Centerview Partners;
• $76 million for legal advice from law firms including Linklaters;
• $2 million to the accountants;
• $9 million for public relations work from Finsbury; and
• $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 on its acquisition of U.K. semiconductor designer ARM Holdings as well as London Stock Exchange Group on its merger with Deutsche Boerse.
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.
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.
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