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SABMiller to seek extension for AB InBev Acquisition

SABMiiller Plc will ask UK regulators to extend the deadline for Anheuser-Busch InBev to make a formal takeover offer. SABMiller will request that London’s Panel on Takeovers and Mergers push back the 5 PM Wednesday deadline as both firms want more time to gain shareholder support and funding.

The Takeover Panel already authorized a two-week extension from the original Oct. 14th deadline for an offer that was worth over $100 billion. On Oct. 13th the world’s No. 1 and 2 brewers announced they reached an agreement in principal where AB InBev would acquire SABMiller and asked for an extension on the deadline.

An analyst for Societe Generale said, “Due diligence exercises usually take four to six weeks, so the two week deadline… will likely be extended.” Also adding, “We would expect a further two-week extension on the morning of 28 October, and wouldn’t be surprised if another 1-2 week extension was made after that.”