Legal Business

Linklaters takes lead role for SAB on proposed mega-merger

Freshfields and Hogan Lovells win roles on deal

Brewing giant SABMiller turned to Linklaters, alongside its regular adviser Hogan Lovells, as it became the focus of a takeover approach in September from Anheuser-Busch InBev (InBev), which has instructed Freshfields Bruckhaus Deringer on a deal that would create a $275bn company.

At press time SABMiller, which owns popular drinks brands such as Peroni and Bulmers, had acknowledged it was the target of a takeover, but said it had not yet received a formal offer from InBev, the owner of Budweiser.

Freshfields has assembled a heavyweight team comprising corporate partners Mark Rawlinson and Simon Marchant, as well as antitrust, competition and trade partner John Davies, as a merger between two of the largest drinks companies in the world is likely to raise antitrust concerns.

In the US, SABMiller has a joint venture with Molson Coors Brewing Company, giving it a 25% share of the market. Combining with the number one US drinks company InBev would give the new company 75% of the market, meaning disposals of certain brands would be likely to allow any deal to pass the regulators.

Linklaters confirmed partner Nick Rumsby would work on the proposed deal, with partner Charlie Jacobs. South African-born Jacobs in 2014 advised SABMiller on the sale of its stake in Tsogo Sun Holdings.

Hogan Lovells, which has been SABMiller’s preferred adviser for a number of years, confirmed it would ‘have a part to play’ and that partner Andrew Pearson would lead a team advising on any potential deal.

The firm has a long association with SABMiller and general counsel (GC) John Davidson spent his entire law firm career at Lovells. In an interview with Legal Business in July, Davidson said he had spent 85-90% of his chargeable time advising SABMiller before becoming the beer group’s first GC.

While Hogan Lovells is SABMiller’s major corporate advisory firm in the UK, especially for banking and securities mandates, it also uses Linklaters, Allen & Overy and Herbert Smith Freehills.

In the US, Cleary Gottlieb Steen & Hamilton has been its main adviser for many years and was used when SAB acquired Miller back in 2002.

victoria.young@legalease.co.uk