Tuesday, October 29, 2013

The old rumor that Anhuser-Busch-Inbev wants to by SAB-Miller has returned. This rumor has been circulating for a couple years and it had quieted last year when SAB-Miller bought the Mexican brewer, Grupo. Now the rumor returns. There's a deeper historical component that makes the story more than just the monopolistic domination of a market sector. Does this tell a sudsy story of the end of Western dominance? Inbev has its origin centuries ago in Belgium. It acquired European brewers as that region declined in power. Then it jumped the Atlantic to buy brewers in the Americas as growth slowed here. For the past decades, the real growth story in beer has been Asia. Snow Brewing in China has become a huge competitor. SAB-Miller has a market cap of about $80B. So after a premium, AB-Inbev would end up paying close to $100B to acquire it. http://business.financialpost.com/2013/10/28/massive-merger-expected-between-anheuser-busch-and-sabmiller/

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