Anheuser-Busch company sought for $45+ Billion

[RonDo]

ST. LOUIS (AP) - Belgian Brewer InBev is offering a big payday to shareholders of Anheuser-Busch Cos. (BUD (http://research.scottrade.com/public/stocks/snapshot/snapshot.asp?id=1&symbol=BUD)) (BUD (http://research.scottrade.com/public/stocks/snapshot/snapshot.asp?id=1&symbol=BUD)) Inc., but its bid to create the world's largest beer company is already facing a major obstacle - U.S. election-year politics.

InBev SA, whose brands include Beck's and Stella Artois, delivered an unsolicited all-cash bid of $65 a share for Anheuser-Busch, which makes Budweiser, Michelob and Bud Light. That's well above the St. Louis-based company's closing share price of $58.35 Wednesday.

But politicians and activists are already lining up against the deal, saying it could cost jobs in the United States and send ownership of an iconic American company overseas. With economic concerns at the front of voters' minds, the opposition could cause a headache for InBev.

Republican Gov. Matt Blunt said Wednesday he opposes the deal, and directed the Missouri Department of Economic Development to see if there was a way to stop it.

"I am strongly opposed to the sale of Anheuser-Busch, and today's offer to purchase the company is deeply troubling to me," Blunt said in a statement.

Web sites have sprung up opposing the deal on patriotic grounds, arguing that such an iconic U.S. firm shouldn't be handed over to foreign ownership. One of the sites, called SaveAB.com, was launched by Blunt's former chief of staff, Ed Martin.

"Shareholders should resist choosing dollars over American jobs," Martin said in a statement Wednesday night. "Selling out to the Belgians is not worth it - because this is about more than beer: it's about our jobs and our nation."

If the deal goes through, it would create a beer-brewing giant and mark just the latest phase of consolidation in an industry facing rising ingredient costs and stale demand in the United States.

"Anheuser-Busch said that its board of directors will evaluate the proposal carefully and in the context of all relevant factors, including Anheuser-Busch's long-term strategic plan," the company said in a statement. "The board will pursue the course of action that is in the best interests of Anheuser-Busch's stockholders."

A spokeswoman said the company would not comment beyond the statement.

InBev Chief Executive Carlos Brito said the deal would boost both companies, giving InBev access to the U.S. market while expanding Anheuser-Busch's reach overseas.

"We have the highest respect for Anheuser-Busch, its employees and its leadership, who have built the leading brewer in the U.S. and grown the iconic Budweiser brand. Together, we would draw on the collective expertise of both companies' management and employees."

Shares of Anheuser-Busch soared 7.6 percent to $62.80 after regular trading hours, when the announcement was made. They had risen 2 percent in late-afternoon trading, when rumors of the deal were reported on CNBC. Speculation has been rife in recent weeks that the deal might occur.

InBev was formed in 2004 when Belgium's Interbrew merged with South America's biggest brewer AmBev. Since then, the company has cut jobs in several European countries while its sales were boosted by strong demand in Latin American countries.

Worries about job cuts at Anheuser-Busch could be justified. InBev has a reputation for squeezing costs out of the companies it acquires, said Benj Steinman, editor of the Beer Marketer's Insights trade publication. Because of its size - and control of nearly half the U.S. beer market - Anheuser-Busch could be a ripe target for cost-cutting.

"One theory is that their own cost reductions are winding down in Europe and Asia and around the world, and they need somewhere to sort of implement what they're best at," Steinman said.

InBev tried to allay those fears Wednesday, saying it would not close any Anheuser-Busch breweries and would make St. Louis the headquarters for its North American division. The company also said it would invite some Anheuser-Busch directors to join InBev's board.

Anheuser-Busch executives have made cost-cutting a goal over the last two years. Sales in the United States have been stagnant as consumers turn toward wine and cocktails, and the rising costs of ingredients have bitten into profit margins.

Last year, Anheuser-Busch turned a profit of $2.12 billion, up nearly 8 percent from $1.97 billion in 2006. But its core brands of Budweiser and Bud Light continued to lag as sales of craft beers and imports rose.

While the InBev deal looks sweet on paper, it's far from a sure thing. InBev said it plans to pay for the deal with $40 billion in debt, and raising so much capital could be tough as banks tighten their standards during a global credit crunch.

InBev's statement said the company has "strong support" from a number of financial institutions, including Barclays Capital, Deutsche Bank and JPMorgan. The company would pay for part of the deal by divesting some "noncore assets" along with equity financing.
Opposition to the deal is sure to be stiff in St. Louis. SaveAB.com offers visitors yard signs and bumper stickers to express their distaste for the purchase.

"Like baseball, apple pie and ice cold beer (wrapped in a red, white and blue label), Anheuser-Busch is an American original," the site says.



Source
(http://apnews.myway.com/article/20080612/D918GF9G0.html)



------------------------------------------------------------------------



Any thoughts? Personally, I want AB to stay an American company.

[Gio Takahashi]

that's quite ridiculous that a foreign company wants to buy out one of the American iconic company. Obviously I oppose the ideal as well, and I hope that InBev will not succeed.

[Arainach]

If there was any chance that they'd improve the worthless shit AB produces, I'd support it, but another mega-corporation probably won't improve it any so I'm tenatively against the merger.

[Killer_Man_]

AB sucks, irish ale is the best. :D

[Seegtease]

Well at least it's just something I don't care about like beer.

[deathofcheese]

They should just get whatever department is in charge of brewing. Who cares if it's American beer if it sucks ass? I don't really like Stella Artois, but anything's better than shitty pulp American beer.

But yeah, another big multinational - American or not - buying up a rather large part of its market is not really a good thing.

[Z]

...Okay, clealy there is some misconception as to how much licenses AB actually owns. It's not all American and it's not all beer. Maybe this will help...

Budweiser Family:
• Budweiser
• Bud Light
• Budweiser Select
• Bud Light Lime
• Bud Dry
• Bud Ice
• Bud Ice Light
• Budweiser & Clamato Chelada

Michelob Family:
• Michelob
• Michelob Light
• Michelob AmberBock
• Michelob Honey Lager
• Michelob Porter
• Michelob ULTRA
• Michelob ULTRA Amber
• Michelob ULTRA Fruit
• Michelob Golden Draft
• Michelob Golden Draft Light

Imports:
• Bass Pale Ale

• Beck’s
• Beck’s Dark
• Beck’s Oktoberfest
• Beck’s Premier Light

• Boddingtons Pub Ale

• Czechvar

• Grolsch
• Grolsch Amber Ale
• Grolsch Blonde Lager
• Grolsch Light Lager

• Harbin Lager

• Hoegaarden

• Kirin Ichiban
• Kirin Light

• Leffe Blonde
• Leffe Brown

• Lowenbrau Original Lager

• Staropramen Pilsner

• Stella Artois

• Tennent’s Lager

• Tiger Beer

Specialty Beers
• Bare Knuckle Stout
• Bud Extra
• Ray Hill’s American Pilsner
• Rolling Rock
• Rock Green Light
• Redbridge
• Shock Top Belgian White
• Wild Blue
• ZiegenBock (Texas-Only Beer)
• ZiegenBock Amber (Texas-Only Beer)

Regional Beers
• SkipJack Amber

Busch Family
• Busch
• Busch Light
• Busch Ice

Natural Family
• Natural Light
• Natural Ice

Malt Liquors
• Hurricane High Gravity
• Hurricane Malt Liquor
• Hurricane Ice

• King Cobra

Seasonal Beers
• Beach Bum Blonde Ale

Specialty Malt Beverages
• BACARDI SILVER Mango Mojito
• BACARDI SILVER Pomegranate Mojito
• BACARDI SILVER Mojito
• BACARDI SILVER Peach
• BACARDI SILVER Watermelon
• BACARDI SILVER Raz
• BACARDI SILVER O3
• BACARDI SILVER Strawberry

• Tequiza

• TILT
• TILT 8.0%

Specialty Organic Beers
• Stone Mill Pale Ale

Alliance Partner Products
• Redhook Ale
• Widmer Brothers

Non-Alcoholic/Energy
• 180 Orange-Citrus
• 180 Red with Goji
• 180 Sugar-Free Orange Citrus Blast
• 180 Blue Low-Calorie
• 180 Blue

• Monster Energy

Specialty Water
• BORBA Skin Balance Water


So, ya, when they say...
Selling out to the Belgians is not worth it - because this is about more than beer: it's about our jobs and our nation.
...they aren't fucking kidding. A lot of jobs.

And anyone who sees fit to give Bush shit about the jobless rate in this country should be outraged by this buy-out possibility. *cough* Ary *cough* ;)

[Killer_Man_]

They could make a contract to sell out but to keep the workers there. :P

And second, I don't know about 85% of those drinks so....

[Z]

I don't mean to sound rude but I have no idea what significance your knowledge of beers has to do with people losing their jobs and livelihoods.

Yes, it is possible they could draft a contract to save everyone's job but not probable. From the article itself on the very first post:

Worries about job cuts at Anheuser-Busch could be justified. InBev has a reputation for squeezing costs out of the companies it acquires, said Benj Steinman, editor of the Beer Marketer's Insights trade publication.
---
Since [InBev merged with South America's largest brewery], the company has cut jobs in several European countries while its sales were boosted by strong demand in Latin American countries.Did anyone else even fully read the article? Gio (and possibly death and RonDo) seems to be the only other one appropriately upset given that we're all pretty prideful of our political insight.

Not only will this make thousands of people that work directly for AB lose their jobs but this will create an international monopoly, of sorts, that will completely corner the market making any other brewers likely have to cut back and sever several more jobs as well! Again, very first post...

If the deal goes through, it would create a beer-brewing giant and mark just the latest phase of consolidation in an industry facing rising ingredient costs and stale demand in the United States.

[Arainach]

Perhaps you're confused, Z, since it's InBev, not Anheuser, which owns Beck's.And anyone who sees fit to give Bush shit about the jobless rate in this country should be outraged by this buy-out possibility. *cough* Ary *cough*Not really. It's his fault our economy is damaged so much that this is POSSIBLE. Besides, don't talk to me about "lost jobs". I'm from Michigan. The state built on the auto economy. The state that's quite possibly permanently fucked because of the auto economy. A few thousand losses is NOTHING. That's the newspaper every other week.

[Killer_Man_]

It has nothing to do with it Z, I am just saying, they could easily sell =out and kepe the orginal work force.

Ary, a lot of plants on WI closed down but then again, even back when gas prices were 2-3 bucks. SUVs and all that were being phased out in WI cause it's more ecosystem 'safe'.

[Z]

Perhaps you're confused, Z, since it's InBev, not Anheuser, which owns Beck's.

I certainly am confused now. Got a reliable source? Mine was the official AB website (in their Products > Alchohol section).

http://www.anheuser-busch.com/Products.html

EDIT: I looked into it a little further. I'm not sure how the relationship is between Owner versus Importer but apparently InBev owns Beck's and AB imports it.

Someone with a little more beer knowledge might shed some light on how that works from an economic and human resources standpoint (I would assume all the transportation is handled by AB but I don't know know how profits split and if it's pre-bottled or if they are bottled in the U.S. and all of that, etc). In any case, it doesn't really change anything. It's still lost jobs.

don't talk to me about "lost jobs". I'm from Michigan. The state built on the auto economy. The state that's quite possibly permanently fucked because of the auto economy. A few thousand losses is NOTHING. That's the newspaper every other week.Good argument.

"If there was any chance that they'd improve the worthless shit AB produces, I'd support [thousands of people losing their jobs]. A few thousand losses is NOTHING."

How do you even defend that kind of logic?

Granted, it's taken out of context but the idea behind it isn't. You claim the right to be dismissive and/or apathetic about job loss because your state has seen a lot of it lately? If that's the case, just say so, I guess. It's not as if it's uncommon. I'm sure people in the middle east could give a rats ass about hearing on the news that there was yet another suicide bomber that day.

EDIT2: Apparently AB employs 24,000+ people est. (2006) ^ (http://en.wikipedia.org/wiki/Anheuser-Busch)

[Arainach]

Businesses get taken over. Jobs shift from one area to another. You don't have a natural right to work for the same company for your entire life. Shit happens. Besides, I thought you conservatives kept talking about how if it's good for business it's obviously good for America. NAFTA and all that.

[Z]

Come on, Ary. You used to be better than this. Now you're just...cold, I guess is the best way to put it. I'm not saying these people have a right to work for AB. I'm saying they currently work for AB and now thousands may not if this merger comes through which will hurt our American economy (yours and mine, not just theirs) even more. I'm saying this is a bad thing in a thread full of "Their beer sucks anyways."


That's all really.

[Arainach]

Perhaps I'm jaded. America is getting exactly what they deserve. Years of waste, arrogance, refusal to think long-term, and bashing and shunning anyone who dared look at the obvious future and try and warn them. This little bit of economic trouble is the tip of the freaking iceberg and I don't feel sorry for a one of them.

That's the problem with America - everyone THINKS they can get rich, so they vote for people who will promise them short-term gains and do everything for the benefit of the elite in the present with no regard for the future. It's the only reason Republicans ever get elected - because people have false hope. Similarly, because people continue shopping at Wal-Mart and to think of nothing but 'screw everyone else, what profits ME the most', this loss of jobs is the direct consequence.

[Killer_Man_]

Perhaps I'm jaded. America is getting exactly what they deserve. Years of waste, arrogance, refusal to think long-term, and bashing and shunning anyone who dared look at the obvious future and try and warn them. This little bit of economic trouble is the tip of the freaking iceberg and I don't feel sorry for a one of them.

That's the problem with America - everyone THINKS they can get rich, so they vote for people who will promise them short-term gains and do everything for the benefit of the elite in the present with no regard for the future. It's the only reason Republicans ever get elected - because people have false hope. Similarly, because people continue shopping at Wal-Mart and to think of nothing but 'screw everyone else, what profits ME the most', this loss of jobs is the direct consequence.

I think you are, but this isn't about which or what party someone is from. This would have happened to anyone, especially since this is a -capitalism society-. This was bound to happen, besides the fact that economy takes more than just 8 years to mess up I think. :| The sad thing is, too much of a surplus is bad, and too much of a debt(or whatever the opposite of surplus is for the economy.) is bad.

[RonDo]

Looks like A-B has rejected the offer. Maybe it is a power play for more money.

[RonDo]

Looks like A-B has rejected the offer. Maybe it is a power play for more money.

Well, it only lasted for so long. AB was bought and now is foreign-owned.

The casualities I forsee, redundant positions at AB's St. Louis headquarters and InBev, with AB getting most of the cuts. Also the Busch Gardens amusement parks will be sold off/closed.

[Gio Takahashi]

Well, it only lasted for so long. AB was bought and now is foreign-owned.

The casualities I forsee, redundant positions at AB's St. Louis headquarters and InBev, with AB getting most of the cuts. Also the Busch Gardens amusement parks will be sold off/closed.

Are you fucking serious? I hope that won't happen :/

[deathofcheese]

I don't know. That sounds like a very extreme measure (unless Busch Gardens are a tremendous money drain; they could very likely be a tremendous money boon); the closing of those parks would be tantamount to renaming several of AB's more well-known products, or rebrewing them to be something even worse than what they are now.

[Gio Takahashi]

From what I understood, Busch Gardens, both parks, are a huge benefit to the company and there's no reason for it to be a huge drain on the money. Even so, I think the cost of closing Busch Gardens would be too high to even do it.

[Arainach]

I presume you mean company not country?

Another potential casualty: Washington University in St. Louis. Something like half of their budget is paid for by Anheuser-Busch. Or, at least, was.

[Z]

http://www.reuters.com/article/topNews/idUSN1337955120080714?feedType=RSS&feedName=topNews

InBev buys Bud for $52 bln to be top world brewer


By Philip Blenkinsop and Martinne Geller

BRUSSELS/NEW YORK (Reuters) - Anheuser-Busch Cos Inc (BUD.N: Quote, Profile, Research, Stock Buzz) accepted a sweetened $52 billion takeover bid from Belgium-based InBev NV NV (INTB.BR: Quote, Profile, Research, Stock Buzz), creating the world's largest beer maker and placing an iconic U.S. company into foreign hands.

Ending a month-long standoff, InBev, which makes Stella Artois and Beck's, agreed to pay $70 per share in cash for the maker of Budweiser, up from its original unsolicited bid of $65 per share, both companies said on Monday. The improved offer marked a 27 percent premium to Anheuser's record-high stock price in October 2002.

The deal, which InBev and analysts expect to gain regulatory approval, would be the largest cash transaction in history, according to research firm Dealogic and the second- biggest ever foreign takeover of a U.S. company after Vodafone Group Plc's (VOD.L: Quote, Profile, Research, Stock Buzz) $60.3 billion acquisition of AirTouch Communications in 1999, according to Thomson Reuters data.

The combined Anheuser-Busch InBev would have about $36.4 billion in annual net sales, with 40 percent coming from the United States, and would brew about a quarter of the world's beer.

InBev Chief Executive Carlos Brito will be CEO of the new company, while Anheuser will get two seats on its board. One will go to Anheuser CEO August Busch IV, who will have no executive or managerial responsibilities, while the other has yet to be named.

Brito told a conference call the beauty of the deal lay in acquiring Anheuser's near 50 percent share of the U.S. market and in taking its Budweiser brand global.

"It's all about complementarity and not overlap," he said.

Anheuser's home town of St. Louis, Missouri will be the headquarters for the North American region. The companies said all 12 of Anheuser's U.S. breweries would remain open.

Brito said InBev was in talks with the maker of Corona and believed the two companies could be "great partners." The talks were taking a "positive" tone, he said.

BEER CONSOLIDATION

After the merger, InBev will regain the top spot for world brewing that it lost last year to SABMiller Plc (SAB.L: Quote, Profile, Research, Stock Buzz), which was boosted by strong growth in China and the purchase of Grolsch.

InBev, known for fierce cost-cutting, must now deliver on its financial promises, while dampening the concerns of workers and politicians, including democratic presidential candidate Barack Obama, who said it would be a shame if Bud were foreign owned.

Brito tried to calm some concerns on Monday by saying there were no plans yet to cut spending on marketing. The company has said it would seek to unload non-core assets, but declined to specify which. Analysts have said a likely candidate was Anheuser's theme park business.

Sucks :(

[Gio Takahashi]

Brito tried to calm some concerns on Monday by saying there were no plans yet to cut spending on marketing. The company has said it would seek to unload non-core assets, but declined to specify which. Analysts have said a likely candidate was Anheuser's theme park business.

That will be quite a harsh cut if that is true.

[RonDo]

If they can get someone to buy the parks, they'll sell them off..but if there are no takers, InBev won't hesitate closing them. In any event, they will probably not be Busch Gardens anymore, in name and spirit.

[Z]

The part that really gets me is that InBev knows very little about the US market and yet...

InBev Chief Executive Carlos Brito will be CEO of the new company, while Anheuser will get two seats on its board. One will go to Anheuser CEO August Busch IV, who will have no executive or managerial responsibilities, while the other has yet to be named.

You'd think they would let the U.S. leadership still run the U.S. brewing/marketing teams while the original InBev team deals with everything else. Seems silly to take a team that knows how to be successful in the U.S. and then put them on the bench while you try to conduct your takeover. :rolleyes:

[Gio Takahashi]

I can agree that it is quite lame. I still think that it was a bad idea.

[RonDo]

The part that really gets me is that InBev knows very little about the US market and yet...

InBev Chief Executive Carlos Brito will be CEO of the new company, while Anheuser will get two seats on its board. One will go to Anheuser CEO August Busch IV, who will have no executive or managerial responsibilities, while the other has yet to be named.

You'd think they would let the U.S. leadership still run the U.S. brewing/marketing teams while the original InBev team deals with everything else. Seems silly to take a team that knows how to be successful in the U.S. and then put them on the bench while you try to conduct your takeover. :rolleyes:


I think InBev is gonna need a really good PR team to handle this takeover. I honestly believe they will loose a chunk of American business.

[Killer_Man_]

Yeah I heard from Colbert's Report about them selling out to the Danish or something. So he was chugging their beer before they changed the formula. Of course, I know Colbert's all about jokes.