TAKEOVER MOVES

London, Sept. 15: SABMiller has sounded out the owners of Heineken about a £82 billion mega-merger as the FTSE 100 drinks group attempts a pre-emptive move against a possible bid by Anheuser-Busch InBev.

In the past fortnight, SAB, whose brands include Foster's and Pilsner Urquell, made a preliminary approach about a buyout of the euros 34 billion (£27 billion) Amsterdam-quoted brewer, which was firmly rebuffed by the Dutch group's founding family. Charlene de Carvalho-Heineken controls the family holding and is known to favour independence.

The approach reflects a growing sense of unease at SAB about its vulnerability as expectations grow of a power struggle in the global beer industry.

SAB has been in the sights of AB InBev, the Belgian-American empire that produces Budweiser, Corona and Stella Artois, for several years, but expectations of a move have grown acute in recent months. Shares in SAB have risen by 46 per cent since February, valuing the company at £55 billion.

SAB has been seen as more vulnerable since the death in December of Graham Mackay, the chief executive, and later chairman, who led its global expansion drive. Over two decades, SAB built itself through acquisitions from a South African brewer founded to quench the thirst of parched goldminers into a global drinks group.

Last week, there were strong rumours that SAB had been taking steps to bolster its defences in case AB InBev were to move.

Brewers are consolidating in an effort to put more muscle behind global brands. By coming together, they can pool the cost of distributing drinks and can command more pricing power. In its approach to the Dutch brewer, SAB offered a deal whereby the Heineken family would become one of the largest shareholders in the combined entity, giving them some ongoing control.

As well as shoring up its defences, a tie-up with Heineken would deliver SAB more than dollars 25 billion (£15.4 billion) in sales and beef up its presence in Mexico, Africa and other emerging markets.

Nonetheless, Ms Carvalho-Heineken, who guards the Dutch business's autonomy jealously, was unmoved. Her father, Freddy Heineken, was the last family member to run the business and her great-grandfather, Gerard Adriaan Heineken, established the empire by acquiring a single Amsterdam site 150 years ago.

SABMiller is considering other options. It is also is thought to be plotting a deal with Coca-Cola to consolidate its bottling in Africa.

A merger of Heineken and SAB would present relatively few competition issues, whereas a tie-up between SAB and InBev would present greater challenges.

InBev, which is quoted in Belgium and the United States and is run by South Americans, has a history of getting big deals through. It is also a famously sharp cost-cutter. It has shelled out nearly $100 billion over the past decade to buy beers from Budweiser to Corona.

Heineken, too, has been mopping up brewers. It bought Scottish & Newcastle in 2008, making it Britain's biggest brewer through brands including John Smith's, and Strongbow cider. It bought Mexico's Femsa two years later and Asia Pacific Breweries in 2012.

Both SAB and Heineken declined to comment.

THE TIMES, LONDON