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| Becks and Stella Artois brewer plans £23bn Budweiser bid |
| 2008-05-24 |
| Inbev, the maker of Becks and Stella Artois, has drawn up plans for an audacious $46bn (£23bn) take-over offer for US rival and Budweiser brewer Anheuser-Busch. If the brewer proceeds with its plans, the long-awaited deal would create a near-$100bn company to overshadow the global brewing market's number two player SABMiller, worth closer to £37bn. Anheuser shares rose 3.59 to $56.17 after the FT Alphaville website revealed that Inbev had appointed investment bank Lazard to map out a $65-a-share offer. Inbev shares fell €1.44 to €48.88 (£38.92). The Belgian-Brazilian brewer, already the world's biggest, is understood to have secured a $50bn funding package from JP Morgan and Santander. JP Morgan is thought to have held a credit committee meeting on Wednesday to approve the loan. An Inbev board meeting followed on Thursday. One rival brewing executive said: "Anheuser is bereft of a growth strategy and is flailing around in its domestic market, apparently not knowing what to do. In short, it looks lame. On the other side, Inbev is seen as an acquisitive and aggressive company set on world domination." Anheuser is believed to have considered a bid for Scottish & Newcastle earlier this year with suggestions that the brewer appointed Goldman Sachs to study a potential offer. It remains unclear whether the Budweiser brewer has appointed advisers to deal with any approach. Inbev is understood to be some way from making a formal offer but is thought to have been studying a takeover since last year. Acquiring Anheuser would give Inbev a number one position in the US beer market as well as a 50pc stake in Modelo, a leading Mexican beer company, and a 29pc holding in Tsingtao, China's biggest brewer. Analysts believe Inbev's management, which rapaciously cut costs after the Interbrew-Ambev merger that formed the company, would look to take a similarly aggressive approach following an Anheuser acquisition. Inbev is thought to regard ownership of Anheuser's huge US business as a perfect foil to its reliance on emerging markets. |
| Posted by:mrp |