Has SABMiller quenched its M&A thirst?

Semi-annual figures could shed light on SABMiller’s mergers and acquisitions plans.

SABMiller glass and silhouette of man
Source: Bloomberg

On Thursday 13 November SABMiller is due to post its half-yearly figures. The markets are expecting adjusted earnings per share to increase from $1.216 billion up to $1.272 billion, while sales are due to rise from $8.518 billion from $13.815 billion. Pre-tax profits are also due to rise to $2.727 billion from $2.394 billion.

The drinks sector continues to look like the next region that will offer investors a little more mergers and acquisition activity. When the company announces its half-yearly figures on Thursday there will be particular attention paid to the accompanying comments. Having failed in its previous efforts to acquire Heineken it will be interesting to see if it comes back for a second bite of the apple, or looks elsewhere.

If Heineken is no longer an option it is possible the firm might turn its attention towards other firms with a similar makeup. Molson Coors has been one name mentioned but is far from the only company that would quench the companies thirst for M&A.

Shares in SABMiller have enjoyed the year so far, up 14% year-to-date. Fueled by M&A rumours the shares have had an intraday high of £38.56 and currently sit some £3.25 below this. A solid set of figures with hints towards the corporate strategy may see the share make up some of that ground. 

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