Belfast Telegraph

5,500 job losses expected due to £79bn brewing giants merger

Over five thousand jobs are expected to be axed as a result of the £79 billion merger of brewing giants Anheuser-Busch InBev and SABMiller - while bankers, lawyers and PR firms are set to celebrate a 735 million US dollars (£556 million) fee bonanza.

According to documents released on Friday, the combined entity will slash approximately 3% of its global workforce, amounting to around 5,500 jobs.

The job losses, part of an attempt to realise 1.4 billion US dollars (£1 billion) in cost savings, will be implemented "gradually, in phases, over a three-year period following completion", it said.

Meanwhile, the likes of Goldman Sachs, Morgan Stanley and Barclays, along with a host of other financial and legal advisers, will share 735 million US dollars (£556 million) in advisory fees.

The fees cover advice relating to the structure of the deal, which is one of the biggest corporate tie-ups in history.

The documents also show that public relations firms Brunswick and Finsbury will walk away with up to 29 million US dollars (£21 million).

Law firms, including magic circle firms Freshfields and Clifford Chance, will trouser up to 261 million US dollars (£197 million).

Last month AB InBev, the world's largest brewer, behind brands such as Budweiser, was forced to table an improved bid for SABMiller following the collapse in sterling after Britain's decision to quit the European Union.

Shareholders in SABMiller, who will now receive £45 a share, up from its earlier offer of £44, are set to vote on the deal next month.