After Anheuser Busch Inbev raised its bid for SABMiller for the fourth time, the two companies have finally agreed to a merger in principle. The expected merger is worth about $106 billion, one of the largest M&A deals ever.

What does the deal mean for shareholders of the two companies? A new report by Citi Research analyst Andrea Pistacchi tackles the terms of the deal and the outlook for the two stocks.

Terms

The terms of the deal are very similar to the terms of last week’s proposal. There is a cash offer of 44 pounds, or about $64 per share, for institutional investors or an alternate offer of a combination of both restricted shares and cash totaling a value of about 39 pounds, or about $59, for Altria Group Inc MO 0.59% and BevCo.

Benefits

The biggest advantage that Pistacchi sees to the deal is…

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