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solzberg in Mergers & Acquisitions,

Will Altria benefit from potential SABMiller-AB InBev deal?

Altria Group (MO) is a US based manufacturer of cigarettes and other tobacco products. However, Altria owns a 27% stake in the world’s second-largest brewer by volume, SABMiller, and can benefit from a possible takeover of SABMiller by beer maker Anheuser-Busch InBev. SABMiller is a non-core business, so a takeover bid from Anheuser-Busch could be Altria's best opportunity to cash out of the SABMiller stake at a maximum profit. Altria can then use the proceeds to reinvest in its core businesses, or return value to shareholders.

Currently, AB InBev and SABMiller cannot agree on price. The deal, however, still looks possible and could be a driver for Altria..