Beck's Sell Off

The market is abuzz with the speculation that Inbev might sell off its Beck’s brand and its local unit to the German market leader Dr. August Oetker KG. The division is stated to be worth close to $2.6 billion. The sell off would include the Diebels brand and is intended to raise capital for the recent acquisition of Anheuser Busch for $52 billion. Inbev plans to sell five of its units lying outside the main division. The sell-off is aimed to expedite its debt repayment. Dr. August Oetker KG currently holds close to 15% of the German beer industry and is looking to consolidate its position further with the Beck’s acquisition. InBev sold about 7.5 million hectoliters (6.3 million barrels) of Beck's in 2007.