published on 21/07/08
(AP) Brewer InBev SA said Monday it will buy U.S. rival Anheuser-Busch for $52 billion to create the world's largest brewer.
The deal sees control over America's largest brewer move overseas as it forms the fourth-largest consumer product company under the name of Anheuser-Busch InBev.
InBev promises that the takeover will help global best seller Budweiser expand into emerging markets like China, Russia and Brazil, generating large profits as costs rise and revenue from beer sales in North America and Europe fall flat.
InBev said Anheuser's board had unanimously accepted a sweetened takeover offer of $70 a share - up from an initial bid of $65 a share that Anheuser rejected as too low in June - just days after both companies initiated legal action that signaled the start of a hostile battle.
The two said in a joint statement that they believed the transaction was in the best interests of both, forming a global company with strong roots in the U.S. where it will also draw 40 percent of its revenue.
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InBev, based in Leuven, Belgium, committed to keeping all of Anheuser's U.S. breweries open, saying Anheuser's St. Louis headquarters would take charge of all North American operations and remain the global home of the flagship Budweiser brand. Anheuser-Busch has more than 48 percent of the American market.
InBev's Carlos Brito, a Brazilian national, will be chief executive of the new company, heading a board that keeps Anheuser chief executive August Busch IV and one other Anheuser board member.
For InBev, the maker of Stella Artois and Beck's, the deal gives an aggressive company an iconic beer brand - Budweiser - to sell into emerging markets where it has already established a firm footprint.
It says it is the number one brewer in 10 markets where Budweiser only has a very limited presence and has a better grip on nine markets where Budweiser sells.
It will be the biggest beer seller in the world's top markets of China, U.S., Russia, Brazil and Germany and promises 'significant growth opportunities' from taking Budweiser and other beers across the world.

Read the full article at CBS News