OREANDA-NEWS. Altria Group, Inc. (Altria) is pleased that Anheuser-Busch InBev SA/NV (AB InBev) today announced its firm offer to effect a business combination with SABMiller plc (SABMiller) to create the largest beer company in the world in a cash and stock transaction valued at approximately $107 billion.

“Altria fully supports this transaction, and we strongly believe that the deal is in the best interest of our shareholders,” said Marty Barrington, Altria’s Chairman, Chief Executive Officer and President. “Upon closing, Altria will continue to participate in the global brewing profit pool as a large and significant shareholder in what will be the industry’s largest company. We continue to work constructively with the parties toward closing, and we look forward to working with the AB InBev management team at the new, combined company.”

At closing, Altria expects to receive an approximately 10.5% stake in the new, combined company and approximately $2.5 billion in cash, subject to proration. In addition, the announced transaction is expected to provide Altria with two seats on the new company’s board of directors, continue the use of equity accounting for the beer asset’s contribution to Altria’s earnings, and maintain a strong asset on the balance sheet. Finally, the transaction structure provides Altria with tax efficiency.

Additional details of the transaction are attached on Exhibit A.