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Published:  23 July, 2008

South African Breweries (SAB) completed the takeover of Miller Brewing last week, in a $5.2 billion (3.5 billion) cash-and-share deal. The new entity, SABMiller, becomes the world's second-largest brewer after Anheuser-Busch. The acquisition reduces the currency risk in SAB's earnings, which have been hit hard by falls in the value of the rand. SAB's move away from emerging markets, where it has been successful, and into the mature American sphere has been met with some concern in the City. SABMiller had planned to raise over 614 million for further acquisitions through a stock placing, but it was forced to withdraw the offer due to falls in its stock price. It appeared to us, against this background, that there wasn't the level of support to proceed with the placing,' said Nick Chaloner, spokesman for SABMiller.