Report: AB InBev To Finance SABMiller Takeover With Record Bond Sale

Anheuser-Busch InBev plans to sell bonds worth up to $55 billion as part of the $106 billion needed to take over SABMiller. That would be a record for a corporate acquisition.

Mnet 171522 Big Budweiser Ab In Bev

The world's largest brewer is reportedly preparing to issue a record level of debt in order to finance the acquisition of its biggest rival.

Bloomberg reports that Anheuser-Busch InBev plans to sell bonds worth up to $55 billion as part of the $106 billion needed to take over SABMiller. That would be a record for a corporate acquisition.

Up to $15 billion more in term loans would bring the total financing package to about $70 billion, which would be floated by seven banks.

Verizon's 2013 bond sale as part of a buyout of Vodaphone, worth $49 billion, currently holds the record.

The companies announced the acquisition earlier this week as they seek to bolster their reach in developing markets and address sales woes — and the rise of craft beer — in the U.S. and Europe.

The regulatory process could delay the AB InBev bond sale for several months, analysts told Bloomberg.

The companies control about one third of the global beer market, but they could be forced to sell off some assets in order to satisfy regulators.

SABMiller's stake in the Miller Coors joint venture could be a prime candidate to be sold in order to appease U.S. officials, where the combined companies would control roughly 70 percent of the beer market.

More in Inventory Management