Business / Companies
Delta share price up as parent firm announces takeover talks
14 Oct 2015 at 01:39hrs | Views
Delta Corporation's share price went up 0,38 percent to 81,56 cents on the local bourse today after details of a possible takeover of its biggest shareholder, SABMiller by the world's largest brewer, Belgium's Anhesuer-Busch InBev in a deal worth over $70 billion were revealed.
In a statement on Tuesday, the two companies said they had ‘in principle' agreed on a takeover deal at a price of £44 (about $67) a share after four previous unsuccessful attempts by the Belgian company to buy out its competitor.
SABMiller is a British-South African company which is headquartered in London and holds a 40 percent stake in Zimbabwe's largest listed firm, Delta Corporation.
Enjoying a 25 percent of the global market, Anhesuer-Busch InBev employs an estimated 155 000 people across the globe while SABMiller employs about 70 000 with a global market share of about 9.7 percent.
The two companies have until the end of the month to finalise the deal.
A merger of the two companies is expected to create the world's most dominant brewer, enjoying a market share of over 30 percent.
The news comes as Delta Corporation, which is the country's largest beverages manufacturer, recently announced it was battling to stimulate demand due to softening consumer purchasing power.
The company is also struggling to fend off stiff competition from cheap imported brands. The local market awaits finalisation of the takeover deal and its possible impact on the future of Delta Corporation.
In a statement on Tuesday, the two companies said they had ‘in principle' agreed on a takeover deal at a price of £44 (about $67) a share after four previous unsuccessful attempts by the Belgian company to buy out its competitor.
SABMiller is a British-South African company which is headquartered in London and holds a 40 percent stake in Zimbabwe's largest listed firm, Delta Corporation.
Enjoying a 25 percent of the global market, Anhesuer-Busch InBev employs an estimated 155 000 people across the globe while SABMiller employs about 70 000 with a global market share of about 9.7 percent.
A merger of the two companies is expected to create the world's most dominant brewer, enjoying a market share of over 30 percent.
The news comes as Delta Corporation, which is the country's largest beverages manufacturer, recently announced it was battling to stimulate demand due to softening consumer purchasing power.
The company is also struggling to fend off stiff competition from cheap imported brands. The local market awaits finalisation of the takeover deal and its possible impact on the future of Delta Corporation.
Source - New Ziana
