Clock ticking for AB InBev and SABMiller over deal

http://www.bbc.co.uk/news/business-34499645

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The world's two biggest brewers, SABMiller and Anheuser-Busch InBev, go into the week having until Wednesday to agree on any potential takeover deal.

Last week SABMiller rejected a £68bn ($104bn) takeover bid by its rival.

It also announced an accelerated cost cutting plan to make annual savings of $1.05bn by 2020.

Markets will be watching to see if AB InBev now raises its bid from last week's £42.15 per share offer. It had also previously bid £38 and £40.

AB InBev boss Carlos Brito has been urging investors to push SABMiller into takeover talks after those repeated rebuffs.

SABMiller said that the latest offer from Anheuser-Busch InBev "very substantially undervalues" the company.

It has also pointed out that a merger would create problems with regulators in the US and China, because of the dominant position that the new company would hold there.

Any deal between the two would create the world's biggest brewer, worth more than £180bn. The merged company would produce one-third of the world's beer.

AB InBev brews Budweiser, Stella Artois and Corona, while SAB brews Peroni and Grolsch, among others.