It’s takeover Tuesday!
Investors are toasting a massive deal between the two biggest beer brewers in the world, Anheuser-Busch InBev (AHBIF) and SABMiller (SBMRY). It will be one of the biggest acquisitions in corporate history.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Merger mania
The company that makes the popular Budweiser beer -- AB InBev -- has agreed to buy its main rival SABMiller for £68 billion ($104 billion).
The combined firm will be the world's largest beermaker by far, with nine of the world's top 20 beers by volume.
Most SABMiller shareholders are being offered £44 ($67.59) per share in cash. Meanwhile, the two biggest shareholders -- Altria (MO) and Colombia's Santo Domingo family -- will have to accept cash and stock worth roughly £39.03 ($60) per share.
Shares in SABMiller shot up by about 8.5% in London trading, while AB InBev shares are rising by 2.5%.
Watch shares in smaller brewers on Tuesday. Molson Coors (TAP) shares could move on expectations that the company may pick up some beer brands that the new mega-group is forced to sell to get regulatory approval for the merger.