InBev Takeover of Anheuser-Busch

The Financial Times’ Alphaville column is reporting that InBev may be preparing a takeover of Anheuser-Busch. It would be a $46 billion takeover.

From The Report: “InBev, the brewing giant created through the merger of Interbrew and AmBev, is working on a $46bn takeover approach for Anheuser-Busch, the iconic American brewer of Budweiser, FT Alphaville has learned.

The deal is being billed as a “transformational” move by those executives and bankers involved, and is likely to herald the long-awaited end-game in global drinks industry consolidation. InBev’s aim is to create the fifth largest consumer products group in the world.

A direct approach to approach to Anheuser chief executive August Busch IV is being planned, although expecting a cool reception, the InBev team are preparing to send a follow up letter to the American group’s entire board, mapping out terms that are expected to be pitched at $65 a share. If Anheuser refuse to commence friendly talks, InBev is considering a public appeal direct to the target’s shareholders.

On Friday, sources indicated that while extensive work had been carried out on the transaction, InBev was “not about to push the button.”

Putting the two companies, however, together would create a business capitalised at close to $100bn and would constitute the most ambitious piece of corporate consolidation since the onset of the credit crisis last summer. Anheuser and InBev together would be almost equally balanced between developed and emerging market operations across the globe, pumping out around 350m hectolitres of beer and other beverages annually. Annual revenues would be around $20bn, producing earnings of close to $6bn at the ebitda level.”

Full Report Here.