InBev Case Study
After a huge battle and different offers, the merger has finally become complete. InBev made an offer to Anheuser-Busch on June 11, hoping to create an unrivalled global brewing giant, but the US Company denied the offer as "financially inadequate." The takeover battle was getting increasingly hostile, with both companies threatening legal action against one another. Belgian-Brazilian brewer InBev then finally got offer taken and swallowed the US rival Anheuser-Busch in a 52 billion dollar (33 billion euro) takeover creating the world's biggest brewer. After having resisted offers from InBev for a month, the Anheuser-Busch board finally agreed to accept a generously higher bid that had been raised to 70 dollars a share in cash from 65 dollars. While ending Anheuser's roughly 150 years of independence as a premier American brewer, the deal creates not only the world's largest beer company but one of the top five consumer goods groups in the world. 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 and Beck's.
For millions, Budweiser is known for American beer. Because of Anheuser’s huge advertising budget and strong distribution network, few brands are as present in daily life as Budweiser and its more popular sibling, Bud Light. Several American beer giants have already been taken over by larger overseas rivals in the last decade. Anheuser’s new merger tops off the league within the beer industry. The rising cost of beer ingredients like grain has also driven companies to seek greater scale and purchasing power.
InBev chief executive Carlos Brito, a tough 48-year-old Brazilian known for cutting costs, is to lead the new company. The combined company is expected to be named Anheuser-Busch InBev, fulfilling a promise by the Belgian company to include the...