SABMiller promises more savings to ward off AB InBev takeover

SABMiller has claimed that it will make greater cost savings over the next five years than planned as it battles against a $65 billion (£42.3 billion) takeover from its larger brewing rival AB InBev.

The Peroni-to-Grolsch brewer said that it would increase its targeted cost-cutting measures from its original $500 million by March 2018 to $1.05 billion by March 2020.

Chief executive Alan Clark said: “The measures we are announcing today are a continuation of our existing cost saving programme.

“Although we are already a highly efficient business with strong margins across our 20 largest managed beer markets, we are continuing to remove duplication, bringing specialist expertise in areas such as procurement under one roof, and standardising common processes.”

The firm would not say what impact the cuts would have on jobs but said that the extra savings would cost it another $26 million over the next five years.