SABMiller to launch bid for Grolsch

SABMiller, the world’s third-largest brewer, said Monday that it would bid $1.2 billion for Grolsch, the Dutch beer with a distinctive swivel cap.

Grolsch is the second-largest Dutch brewer after Heineken, with approximately 15% market share in the Netherlands.

The companies said Grolsch would back the 48.25 euros ($70.57) a share offer, which they said offered a premium of more than 80% to Grolsch’s average share price over the last month.

Grolsch shares leapt 76% to 47.25 euros ($69.30) in Amsterdam on Monday.

Shares in SABMiller fell nearly 3% to 13.06 pounds ($26.84) in London.

London-based SAB said it believed it would be able to expand Grolsch’s brand more quickly than the company could independently. It sees growth “potential for the Grolsch brand across Africa and Latin America, where the premium segment is still in its infancy, and in the more developed markets of Central and Eastern Europe.”

A formal offer will be launched in January and is subject to regulatory approvals and a 75% acceptance by Grolsch shareholders, the companies said. However, Grolsch shareholders representing 37% of shares have agreed in advance to tender their shares to the offer.

SABMiller makes Miller beers, Pilsner Urquell and Peroni, among others.

Grolsch is known almost entirely for its Grolsch lager, which accounts for 90% of its sales worldwide, though it has introduced a range of seasonal beers and a white beer in the Netherlands. It has sales in Britain, the U.S., Canada, France, Australia and New Zealand.