As Anheuser-Busch, SABMiller Deal Closes, Altria Details Impact

Altria Group Inc. said it is now a significant shareholder in Anheuser-Busch InBev NV, after AB InBev's roughly $108 billion acquisition of rival SABMiller PLC closed Monday.

The tobacco company, which was a big SABMiller shareholder, received AB InBev shares representing about 9.6% of the combined company, as well as $5.3 billion in cash. Altria also said it is expanding its stock-buyback program to $3 billion, up from $1 billion previously.

Because of timing differences between Anheuser-Busch's and Altria's financial reporting quarters, Altria will now record Anheuser-Busch results on a one-quarter lag. Altria updated its financial projections accordingly, and expectis earnings per share to be between $2.98 and $3.04, compared to $3.01 to $3.07 previously.

Altria expects to record a pretax gain in its reported earnings of about $13.7 billion, or $4.55 per share, related to the merger.

Marty Barrington, Altria's Chairman and Chief Executive, and Billy Gifford, Altria's Financial Chief, have also been appointed to AB InBev's board.

Altria shares rose 0.3% to $61.95 in premarket trading.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

October 11, 2016 09:55 ET (13:55 GMT)

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