Megabrew a Boon for Bankers and Lawyers, With $2 Billion in Expensesby
AB InBev will pay $1.74 billion in fees, expenses, taxes
SABMiller to pay $202 million in fees to advisers on deal
Banks, law firms, accountants, public relations companies and the tax man are lining up for about $2 billion in fees and expenses from Anheuser-Busch InBev NV’s $103.8 billion takeover of rival SABMiller Plc.
AB InBev will pay out $1.74 billion, the company said in a statement Friday. That includes:
- $725 million for financing arrangements
- Up to $135 million for financial and corporate broking advice split by advisers including Lazard Ltd., Deutsche Bank AG, Barclays Plc, BNP Paribas SA, Bank of America Corp. and Standard Bank Group Ltd.
- As much as $185 million for legal advice to firms including Freshfields Bruckhaus Deringer LLP
- $15 million to the accountants
- $20 million for public relations advice from Brunswick Group
- $180 million for other professional services, such as management consultants
- $475 million for transaction taxes, other costs and expenses
SABMiller will pay $202 million in fees including:
- $113 million for financial and broking advice to banks led by financial advisory boutique Robey Warshaw LLP, along with JPMorgan Chase & Co., Morgan Stanley, Goldman Sachs Group Inc. and Centerview Partners
- $76 million for legal advice from law firms including Linklaters LLP
- $2 million to the accountants
- $9 million for public relations work from Finsbury
- $2 million for other costs and expenses
The deal is the latest win this year for British bank Robey Warshaw. The company also advised Softbank Group Corp. on its acquisition of U.K. semiconductor designer ARM Holdings Plc as well as London Stock Exchange Group Plc on its merger with Deutsche Boerse AG.
As part of the deal, AB InBev also expects to cut about 3 percent of the combined company’s workforce in the next three years, it said in documents related to the acquisition published Friday. That amounts to about 5,500 jobs, a person familiar with the matter said. The job cuts will form part of the $1.4 billion of annual savings that AB InBev has said it’s seeking from the takeover.
Last month, SABMiller’s board unanimously recommended AB InBev’s improved takeover offer, paving the way for the biggest acquisition in the history of the beer industry.