SABMiller rejects new AB InBev bid

A union between Budweiser and Miller is off the table for now after the owners of two of the world’s most famous beers continued to haggle over terms of a merger.

Budweiser’s Belgian-Brazilian owner, AnheuserBusch InBev, sweetened its bid for SABMiller to more than $104 billion on Wednesday, but SABMiller quickly rejected the offer as not enough.

“AB InBev is very substantially undervaluing SABMiller,” SABMiller Chairman Jan du Plessis said.

There was no outright rejection of any merger, though, so it remains possible that a sweetened offer by AB InBev could win approval.

The combined company would have 31% of the global beer market, dwarfing the next-biggest player, Heineken, which has 9%. As well as bringing together two of the biggest-selling brands in the U.S., a merger would put AB InBev’s Stella Artois and SABMiller’s Grolsch in the same stable.

It also would enable AB InBev to make inroads in the African and Australian markets, where it is less of a player than in Europe, North Africa and Asia.

AB InBev Chief Executive Carlos Brito said the combined company “would build the first truly global beer company.”

The sheer size of the combined company is expected to push regulators to require the sale of some brands to ensure fair competition.

Phil Carroll, an analyst with Shore Capital, said he expects SABMiller to eventually agree to a deal. “We believe this represents a good deal for SAB shareholders,” he said.

Beer makers are being pushed into consolidation by eroding market share and competition, particularly from trendy craft beers.