The Purchase
Anheuser-Busch InBev: Now the World’s Biggest
17/07/2008 00:00
Budweiser brewer Anheuser-Busch has finally agreed to a $52bn (£26bn) takeover by InBev.
The board of the St Louis-based brewer relented after an improved offer of $70 (£35) per share from the Belgian giant. The new operation — Anheuser-Busch Inbev — will be one of the world’s five largest consumer-goods companies.
The combination of Anheuser-Busch and InBev — on a pro-forma basis for 2007 — would have generated global volumes of 460 million hectolitres, revenues of $36.4bn (£18.2bn) and Ebitda of $10.7bn (£35.4bn).
InBev CEO Carlos Brito will be chief executive of the new company, and the headquarters of Budweiser in St Louis, Missouri, will remain the base for the company’s North American operation.
Brito said: “We are very pleased to announce this historic transaction, which brings together two great companies that share a rich history of brewing traditions.
The transaction will be financed with $45bn (£22.5bn) in debt, including a $7bn (£3.5bn) bridge financing for divestitures of non-core assets from both companies.
In addition, InBev has received commitments for up to $9.8bn (£4.9bn) in equity bridge financing, which will allow it flexibility in deciding upon
the timing and form of equity financing for a period of up to six months after closing.
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