Posted on 07/13/2008 11:15:56 PM PDT by Schnucki
The US brewer Anheuser-Busch has agreed to be taken over by Belgium-based InBev, in a move that will create the world's largest beer maker.
The $50bn (£25bn) takeover bid by InBev, which makes Stella Artois beer, was accepted by Anheuser's board.
The combined company will now be called Anheuser-Busch InBev.
Anheuser makes Budweiser - the most popular beer in the US - and some US politicians had expressed anger at the prospect of a foreign takeover.
'Unrivalled brands'
In a concession to political concerns about the deal, Budweiser's headquarters will remain in St Louis, Missouri while none of Anheuser's US breweries will be closed.
InBev is offering to pay $70 a share for Anheuser in a deal which must be approved by shareholders of both businesses.
The combined business will have annual sales of $36.4bn, equivalent to 460 million hectoliters of beer a year.
It will bring a host of popular brands including Beck's, Hoegaarden and Staropramen - in addition to Budweiser and Stella - under one roof.
InBev, itself formed by a giant merger several years ago, described the deal as "historic".
"Together, Anheuser-Busch and InBev will be able to accomplish much more than each can on its own," said InBev boss Carlos Brito, who will become chief executive of the new firm.
"This combination will create a stronger, more competitive global company with an unrivalled worldwide brand portfolio and distribution network, with great potential for growth all over the world."
Anheuser boss August Busch said the transaction would "enhance global market access for Budweiser, one of America's truly iconic brands".
Job concerns
There are widespread fears that the deal will lead to substantial job losses in the US Midwest at a time while the threat of recession is hanging over the economy.
The two firms have said the deal will generate annual savings of $1.5bn but have suggested that job losses will be kept to a minimum because there is little current overlap between the two businesses.
Anheuser currently controls nearly half of the US market, while InBev is strong in Western European and Latin American markets. Anheuser also owns stakes in Mexican brewer Grupo Modelo and Chinese brewer Tsingtao.
The deal should give Budweiser a platform to boost its growth in Europe where, apart from a number of markets like the UK, it has been relatively weak.
The beer market has been rapidly consolidating in the face of cost pressures and declining sales in many mature markets.
Scottish & Newcastle, the UK's largest brewer, was recently bought out by Heineken and Carlsberg.
“Matt’s Beer”
You’re a Philistine. Matt’s ruled.
The sad thing is AuntB, some well meaning people who think they know it all, will be more than happy to facilitate this.
There have always been folks who thought certain things that undercut their own nation, weren’t very important. In fact some of them thought it was great.
It simply amazes me to see folks who are faced with five dots in a straight line, who cannot connect them to save their own arses.
“It simply amazes me to see folks who are faced with five dots in a straight line, who cannot connect them to save their own arses.”
That’s it. That’s the most frightening thing, isn’t it? My own 40 year old child is one of them. But she’ll cut off her nose to spite her face trying to shove that square peg in a round hole. There is almost a concerted effort to demonize anyone who questions anything anymore. I was born asking questions and I have every intention of going out that way. :<)
What exactly are the dire or supposed negative consequences of InBev purchasing AB?
Would a domestic buyer of AB make totally different and opposite business decisions after aquiring AB?
And if the past 25 years are any indication of the future, there is a good chance that a domestic concern will purchase AB back from InBev at a greatly reduced price.
Happened to nearly all of the businesses and properties that Japan bought in the 1980s.
I can’t argue the merits of this transaction, don’t know enough about it. Don’t care enough to learn. There’s too many to keep track of. Doughty and I were having a basic philosophical discussion.
Yuengling Lager is made by people who threw out the Teamsters union. Sam Adams is made by people who thought the company would be promoted by couples having public sex in a church.
Yuengling is better anyway.
“Going out...” HEY!
Knock it off! ;-)
Good for you AuntB.
I have never liked Sam Adams beer. But did they develop that bit of marketing material, or was it the radio station, or more directly, the on air host at the time who came up with that one?
Negra Modelo is perfect beer
One of my favorite japanese deals was Pebble Beach. A Japanese Businessman bought it in 1990 for $850 million. Got in trouble and had to sell it less than 2 years later for $500 million to another Japanese firm. Americans then bought it back in 1999 for $820 million.
LOL!
The chairman of the company, Jim Koch, was an in-studio participant according to the story I read. While he may not have originated the idea, any CEO is always representing his company in any public venue ergo Jim Koch’s participation is Boston Brewing Company’s participation.
NOT TRUE!
They are not a 'micro-brew.' They are actually a fairly large, not A-B, Miller or Coores scale, but not small either.
It will still be 'American beer' as it will be made in the same places it is being made now.
Does he really care where the corporate offices are?
I’m not completely sold on the idea of you being wrong here. I can tell you that I lean in a different direction quite strongly.
The approximate $75 million (from memory, may be more or less) dollar trade deficits we were experiencing with Japan in the 80s, is not what we’re talking about here.
We are talking about a massive $800 billion dollar per year sucking sound. And we can debate the merits of this until the end of time. I’ve engaged in that enough for one lifetime.
Is it just the trade deficits and what they portend?
Is it just the dollar standing at a very low point, with a potential 9.5 financial earthquake on the horizon?
Is it just the 100 million plus McCain or Obama will see naturalized over the next decade?
Is it just the plan to cut back our nuclear warheads to the absolute bare minimum necessary?
Is it just our pulling out our nuclear warheads from Europe?
Is it just our plan to close Gitmo?
Is it just the idea we will forbid water boarding?
Is it just the idea we will grant some Geneva Convention lawful combatant status to terrorists?
Is it just the granting of Social Security to folks who never worked a day in our nation?
Is it just the flooding of our nation with lawful immigrants?
Is it just the three nation security agreement?
Is it just the FTAA?
Is it just the AU?
I could go on, but none of this is important. “Issues like this have plagued our nation from it’s inception. There’s nothing new here. Move along... move along...” That’s what I see taking place every day.
I’m not intending to dump this in your lap. I think you can see a fair amoung of frustration in my post, with what is going on.
I seem to see a lot of folks thinking none of this matters, because each one of these things isn’t really that big a deal (in some folks eyes) on it’s own mertis.
I don’t think that’s how the world works. It’s never just one thing on it’s own. It’s always how the whole picture comes together, and I don’t like this mosaic one bit.
Color me paranoid. Color me simple. I don’t care. That’s how I see all this. I’m not bashful about revealing how I see it.
Take care.
So my question is, will this make Budweiser better or Stella worse? Probably neither.
D.G. Yuengling & Son, commonly called Yuengling, of Pottsville, Pennsylvania, is the oldest operating brewing company in the United States, having been established in 1829, and is one of the largest breweries by volume in the country. Yuengling's trademarked phrase "America's Oldest Brewery" refers to the U.S. only, as the Canadian brand Molson, founded in 1786, is the oldest in North America.[1]
Yuengling produces 1.2 million barrels (140 million liters) annually, which as of 2005, placed it sixth among American commercial breweries. Besides its two Pennsylvania facilities, Yuengling also operates a brewery in Tampa, Florida.
No, I explained that it will still be made here and he’s ok with it. He just didn’t want to “drink someone else’s job” so to speak.
?? Because they made them pay through the nose. Since the Busch family has so little stock left, they had no say once the offer was raised.
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