trading.co.uk now live!

Click here to sign up for free

+44 (0)330 313 1000

by Gareth Brown , Graham Cookson
in trading.co.uk , Stocks
on 14 October 2015

A look back at the AB InBev and SABMiller takeover indicates advanced trading opportunities


On Tuesday October 13, 2015, it was announced that Anheuser-Busch (AB) InBev’s (producers of Budweiser, Stella Artois and Corona) offer to takeover SABMiller had been accepted (in principal), for £70billion (£44 per share).

Early signs

As early as September 16th reports of AB InBev approaching SABMiller for a takeover were surfacing.

The morning of September 16th, SABMiller’s share prices rose dramatically from 3077 to 3722 within two hours, as stories of a potential merger began to surface. The trading.co.uk platform was able to pick up on the article at 6:37AM, soon after the initial reports surfaced.

It wasn’t until later that morning, around 9:00am when the majority of media outlets began reporting the news and between 10:00am – 10:30am, SABMiller’s stock jumped from 3098 to 3722.

 

Timeline breakdown (note: all times in BST):

  • Tuesday Sept 15 4:40PM
   Market closes - SABMiller stock price at 3022.50.
  • Wednesday Sept 16  5:30AM 
  Initial reports of AB InBev takeover bid of SABMiller surface.
  • 5:37AM
  trading.co.uk picks up and displays story from several early sources and displays growing social chatter around the terms, including: “Anheuser-busch” “takeover” “merger” “SABMiller” “rival” “plans” “deal” and “approach”.
  • 8:30AM
  Market opens - SABMiller’s shares at 3077.
  • 9:00AM
  News coverage spreads as major international media outlets report story.
  • 10:00AM
  SABMiller shares move slightly to 3098.
  • 10:30AM
  SABMiller shares jump by nearly 700 points to 3722.50 

 

Result

trading.co.uk was able to pick up on the early stories nearly five and a half hours before a major shift in stock price occurred. Had a trader been using our platform, they would have gained a huge edge over other traders, making a potential gain of nearly 700 points per share in SABMiller. 

 

Takeover agreed

On Tuesday October 13, 2015, it was reported that SABMiller had accepted the initial terms of a takeover from AB InBev.

At market close on Monday October 12, SABMiller’s stock was at 3640.50. Reports of the agreement began to surface in the early hours of the morning and by market open, SABMiller’s stock had jumped to 3952. 50.

trading.co.uk was able to pick up on the news stories within minutes of them breaking, in the early hours of Tuesday morning. With social chatter around terms, including: “InBev” “takeover” “Anheuser-Busch” and “Merger”.

 

SABMiller stock jumps to 3952.50 upon market open. By 9:00AM most major international news sources begin reporting the story.

 

Timeline breakdown (note: all times in BST):

  • Monday Oct 12 4:30PM
  Market close – SABMiller stock at 3640.50.
  • Tuesday Oct 13 6:15AM
  Initial reports of SABMiller takeover surface.
  • 6:22AM
  trading.co.uk picks up and displays story from initial sources, with social chatter around terms, including: “InBev” “takeover” “Anheuser-Busch” and “Merger”.
  • 8:00AM
  Market open – SABMiller stock has jumped more than 300 points to 3952.50 overnight.
  • 9:00AM
  Major media outlets begin reporting news of takeover agreement.

 

Result

trading.co.uk was able to pick up the initial reports and buzz around the AB InBev takeover of SABMiller nearly two hours before the markets opened and three hours before most major media outlets began to report the news.   

 

 

Liked this? You may also be interested in: