Two brewer companies, Anheuser-Busch, based in United States, and InBev, a Belgium firm, reached an agreement that would set up a new beer maker, which is believed to be the largest in the world.
InBev's takeover bid totals $52 billion. Anheuser accepted the offer of the Stella Artois beer maker. The newly established company is going to be called Anheuser-Busch InBev. It is worth mentioning that the U.S.-based Anheuser-Busch is the producer of America's most popular Budweiser.
The takeover has faced criticism from some of the U.S. politicians, due to the fact that the company is going to be taken over by a foreigner.
To achieve compromise with political concerns regarding the
deal, the company said that its headquarters will operate in the same place, St. Louis, Missouri and none of its breweries will be closed.
According to the deal, InBev offers $70 per share for Anheuser-Busch. The deal must yet be approved by shareholders of the two parties. The estimated annual sales of the combined company will be $36.4 billion, which is also equal to the production of 46 billion liters each year.
Besides Stella Artois and Budweiser, the new company will also produce beer of such popular brands as Beck's, Hoegaarden and Staropramen. The officials of the Belgian company commented on the takeover, calling it "Historic." InBev itself is the result of a giant merger that occurred several years ago.
"Together, Anheuser-Busch and InBev will be able to accomplish much more than each can on its own. 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," outlined Carlos Brito, InBev chief executive. After the takeover he will receive the position of the new company's chief executive.
The CEO of Anheuser, August Busch, mentioned that the upcoming merger would "enhance global market access for Budweiser, one of America's truly iconic brands".
The announcement regarding the merger of the two giants raised concerns linked with the fears that the deal will lead to significant job losses in the US Midwest. Representatives from both companies mentioned that annually the new firm will generate $1.5 billion but advocated that there will be minimum job losses, due to the fact that there is little overlap between the two brewer firms.
The American company controls about 50 percent of the US market, while the Belgian InBev shows a strong positioning in the markets of Western Europe and Latin America. Anheuser is also the owner of some stakes in Grupo Modelo, Mexican-based company and Tsingtao, a company that produces beer in China.
After the takeover Budweiser could significantly increase its growth in Europe, where it previously had been quite week, except several markets, including the UK.
Currently the beer market shows a great improvement, overcoming cost pressures and down-slopping sales is most mature markets.