It’s nice to see the rest of the world voting for dumb things — not just us overprivileged Americans. Since the United Kingdom voted to leave the European Union in late June, the British pound (which has been so strong over the last few years) has seen a mighty fall in exchange rates around the world. In fact, the British pound has beaten Argentina’s peso for the title of the world’s worst performing currency. This is bad news for SABMiller, which is a multinational brewing and beverage company headquartered in London.
Right now, SABMiller shareholders are basically being offered devalued U.K. pounds in exchange for their shares to AB InBev (a.k.a. Beer Voltron). Now, these stakeholders most assuredly understand why no one ever cries for Argentina. From CNN Money:
To put this in context, the takeover offer of £44 per SABMiller share had been worth $67.59 when the deal was announced in October. Now that same £44 will only get you about $58.
“I think that AB InBev and SABMiller can come to an agreed set of terms and [the deal] will move forward. But clearly Brexit has thrown an additional complication into AB InBev’s way,” said Alicia Forry, an analyst at the investment bank, Liberum.