SABMiller vows to double cost savings amid takeover battle

SABMiller, the target of a £65 billion bid from brewing rival Anheuser-Busch InBev, has vowed to double its cost savings, as the takeover battle between the world's two largest beer makers intensifies.

On Friday, the London-listed producer of Grolsch, Peroni and Miller Lite expanded the cost savings programme it first announced in May 2014, with the aim of saving "at least" $1.05 billion a year by 2020.

These increased savings will come from a total cost base of $10 billion, and the group will incur one-off costs of $26 million to achieve them.

By the end of March, the brewer had already found annual savings of $221 million.

Alan Clark, SABMiller's chief executive, said that a leaner organisation would help to accelerate sales.

– (Copyright The Financial Times Limited 2015)