SABMiller, AB InBev deal cheers bourse

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FTSE/JSE Africa Index Series

STOCKS closed firmer yesterday, led by brewer SABMiller whose shares jumped after accepting a takeover offer from larger rival Anheuser-Busch (AB) InBev, creating a company making almost a third of the world’s beer.

The benchmark Top40 index added 0.85 percent to 47 643.86 points, while the wider all share index rose 0.58 percent 53 063.06 points.

ended 9.97 percent higher at a record close of R805, having gained about 30 percent over the last month. The world’s two biggest beer makers agreed to a deal after SABMiller received an improved offer of $106 billion (R1.4 trillion) from

SABMiller

Budweiser and AB InBev.

“This deal enhances Anheuser’s reach because SABMiller has a much bigger reach, and for SABMiller I think they just got the right price,” Bruno Van Eck, a trader at Thebe Stockbroking, said.

Other shares that gained on the bourse included which increased 0.88 percent to R12.55 after it received shareholder support for a R850m rights issue.

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AdvTech,

jumped 3.27 percent to R63.15, after first-half profit leapt 23 percent as costs were cut and supermarkets were added.

The biggest decliner on the gauge was which plunged 11.63 percent to R11.40.

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Stores

ArcelorMittal,