Brewing giant battles to win backing for £79bn merger

INSTITUTIONAL shareholders will have the power to veto a £79bn takeover of SAB Miller after a crunch vote won backing from the High Court.

The takeover – one of the biggest in British corporate history – will see the brewing giant pass into the hands of Belgian company AB InBev.

It will unite more than 400 world-famous beers such as Stella Artois and Fosters under one roof and create a behemoth with a 30pc share of the global market. But although backed by both boards, the deal had faced opposition from some SAB shareholders who felt that its two biggest investors were being unfairly favoured.

Tobacco firm Altria and BevCo, the holding company of Colombia’s Santo Domingo family, own around 41pc of the company.

Unlike the all-cash offer for other shareholders, the pair will be getting a mixture of unlisted InBev stock and a small amount of cash. Critics claim this is favouritism aimed at limiting their tax liabilities.

SAB said it would give the other 59pc of shareholders a separate vote in a bid to calm tempers – and this plan has been approved by the High Court.

City institutions such as pension funds as well as smaller investors will be balloted next month and 75pc must give their approval.

Altria and BevCo will not be voting as they have already signalled their support.

The proposal is understood to have faced a failed courtroom challenge from US hedge fund Soroban Capital Partners, which is in favour of the takeover.

However, top ten investor Aberdeen Asset Management had pushed hard for the separate vote. A spokesman said: ‘We intend to vote against the deal as we are uncomfortable with the structure and believe it undervalues the company.’

But analysts expect the deal to win majority support, pointing out that InBev has said the current offer is final and it will walk away if it doesn’t win support.

The brewer raised its offer seven times before settling on the current price of 4500p per share.

SAB shares edged up 0.05pc or 2p to 4381p.