InBev says it has closed Anheuser Busch takeover

by CJaye | November 19, 2008 at 07:10 am

66 views | 0 Recommendations | add comment

InBev says it has closed Anheuser Busch takeover

The U.S. Department of Justice cleared the deal last week after InBev agreed to sell Labatt USA, which sells the Canadian beer in the U.S. It will hold on to Labatt in Canada. InBev did not say who would buy the American unit.

InBev SA formed the world's largest brewer Tuesday when it finalized its $52 billion (euro41 billion) takeover of Anheuser-Busch Cos. Inc.

The new company, named Anheuser-Busch InBev, will be headed by InBev CEO Carlos Brito and will be headquartered at Leuven, Belgium.

InBev promises to keep Anheuser-Busch's St. Louis base as the company's North American headquarters but the takeover ends 150 years of family rule at Anheuser-Busch. Anheuser-Busch President and CEO August A. Busch IV joins the new company's board as a non-executive director. Anheuser-Busch shares stopped trading Monday and will now be swapped for $70 each in cash.

The Belgian-Brazilian takeover of Anheuser-Busch comes after a bitter takeover battle turned sweeter with a higher offer in July, despite protests in St. Louis that saw politicians criticize the deal and Web sites call for Bud to be saved from 'the waffle guys.'

Anheuser-Busch provides half of America's beer but it has not managed to expand around the world as fast as InBev a Belgian-Brazilian hybrid that owns hundreds of local brands but few real stars.

Anheuser-Busch owns several properties in Virginia in the Williamsburg area. In addition to a brewery in Williamsburg, the company's subsidiaries own the Busch Gardens theme park, the Kingsmill Resort and Spa, and the Water Country USA water park.

InBev has promised to keep all 12 North American breweries open as long as the company faces no new U.S. taxes. Anheuser-Busch already plans to shed 1,185 positions mostly by offering early retirement and not filling vacancies.

The company did not mention a dispute with Mexico's largest brewer Grupo Modelo which was 50-percent owned by Anheuser-Busch. Grupo Modelo filed a notice of arbitration against Anheuser-Busch last month, saying the takeover violated their investment agreement and its right of consent to enter into a partnership with InBev.

Taking over Anheuser-Busch gives InBev a jewel of a brand in Budweiser the world's top selling beer which it promises to sell more widely by pushing into emerging economies in Asia, Latin America and eastern Europe. It will sell a fifth of all beer in both Russia and China.