Monday, 16 June 2008

InBev bids for Busch

Rumours of a planned bid by InBev for Anheuser-Busch have become reality as the world's biggest brewer has tabled a mighty $46 billion/$65 a share hostile takeover of the U.S. producer of the world's biggest brand, Budweiser. Last week, August Busch IV, chief executive of A-B, met two InBev directors in Tampa, Florida, for exploratory talks. The talks were followed by a letter from InBev's chief executive, Carlos Brito, to Busch in which he spoke of the benefits of combining the two beer giants.

"I believe the combination of InBev and A-B would be industry-transforming," Brito added. "It would create an unparalleled opportunity for our two companies."

While August Busch IV is opposed to the takeover, other members of the Busch family are taking a softer line, but the final decision will be taken by independent shareholders. A merger of the two brewers would give them a 25% global market share of the beer business, producing 460 million hectolitres a year.

1 Comments:

Blogger Jeff Alworth said...

And InBev would buy into half the US market. But wait! Does a possible A-B buyout of Grupo Modelo scuttle the deal? The intrigue, the politics, the skullduggery! It's like a bizarre game of chess, and I can't take my eyes off it.

(Americans are none to pleased to think that a Belgian brewery would be buying a company arguably more American--oddly, given its origins--than Ford.)

17 June 2008 at 01:17  

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