beer firegeezer on 25 May 2008 08:41 am
Bud Being Bought By Belgian Brewer?
THE CITIZENS OF ST. LOUIS HAVE THEIR WORTS IN A TWIST this weekend after word got out that Belgian beer behemoth InBev is considering a hostile takeover of Anheuser-Busch.
InBev is currently the world’s largest brewer, by volume produced, and is looking to get into the lucrative American market. Last year they made an import/distribution agreement with A-B to market some of their brands in the U. S.
InBev has been gobbling up some of the leading brewers in the world including Beck’s and the venerable Bass Ale. A-B’s standing in the beer world was recently surpassed by the proposed merger of Miller and Molson/Coors. A-B’s stock was trading for around $52 before this news came out and then it jumped up to nearly $57 on Friday. InBev is said to be considering an offer of $65 to the shareholders which will be hard for them to refuse.
Anheuser-Busch’s stock value has actually declined by 1.4% in the past five years while the Standard and Poor Index has risen 51% in that same time. It is speculated that if InBev takes over the St. Louis firm, it will lead to a large cutback in A-B’s advertising budget.
If you’re interested in the nitty-gritty of this story, start with this good background article in Bloomberg News HERE.
Firegeezer notes: If InBev takes over Bud, maybe they will stop the odious practice of putting rice in their mash. Yuck!
