Wednesday, November 19, 2008

Inbev completes Anheuser Busch acquisition


The acquisition of Anheuser Busch by the Belgian brewing giant, Inbev has finally happened. The new $100 billion conglomerate has been named as Anheuser Busch Inbev and has become the largest producer and seller of beer, brewing one-fourth of the world's beer and one of the top 5 consumer goods group of the world. The merger totaling $52 billion is the largest ever acquisition in the brewing world with Inbev shelling out dollar 70 per share of Anheuser Busch.

The new company will have net sales of about 36 billion dollars a year, offering consumers about 300 brands, including Anheuser's Budweiser and Bud Light, and InBev's Stella Artois, Beck's, Leffe and Hoegadden.

Carlos Brito would be the new CEO and Anheuser-Busch CEO August Busch IV will take a seat on the new brewer's board. Anheuser-Busch InBev will have its global headquarters in Leuven, Belgium, but will also retain A-B's traditional HQ in St Louis.
The deal is to be financed partly through debt and partly through a short-term equity bridge loan. Inbev has taken up a loan of $45 billion, however the $9.8 billion rights offering has been deferred by 6 months owing to the global financial crisis. Inbev plans to sell off some of its assets as well as the Anheuser’s entertainment and other assets to raise close to $7 billion.

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