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Bankers on tap for $50 billion buyout of Anheuser-Busch

Posted Jun 2nd 2008 8:30AM by Tom Taulli (RSS feed)
Filed under: Citigroup Inc. (C), JPMorgan Chase (JPM), Anheuser-Busch InBev (BUD), , Goldman Sachs Group (GS)

Perhaps the credit crunch is showing some improvement? For example, according to a report in the Telegraph, it looks like InBev – the world's no. 2 beer company -- is close to getting $50 billion in financing for a bid for Anheuser-Busch Cos Inc. (NYSE: BUD). Some of the banks include JP Morgan (NYSE: JPM), Santander, BNP Paribas and Merrill Lynch (NYSE: MER).

But isn't the Busch family resistant to a bid? In theory, that may be the case. However, it's hard to say "no" to a premium buyout deal. Besides, the beer industry is in the midst of a global consolidation trend. And, with Anheuser-Busch's relatively high cost structure and lackluster global strategy, the future does look murky.

In the meantime, Anheuser-Busch is preparing for a fight. That is, it appears that the firm is getting anti-takeover advice from Goldman Sachs (NYSE: GS) and Citi (NYSE: C).

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Molson Coors (TAP), SABMiller (SBMRY) to combine forces in U.S.

Posted Oct 9th 2007 9:45AM by Tom Barlow (RSS feed)
Filed under: Deals, Anheuser-Busch InBev (BUD)

Beer giants SABMiller (OTC: SBMRY) and Molson Coors (NYSE: TAP) took a huge step toward grabbing market share in North America by announcing today their intention to combine U.S. operations into a new company, MillerCoors. The new entity will start with combined U.S. sales of of 69 million barrels of suds, net revenues around $6.6 billion and combined EBITDA of $842 million. The companies expect combined production and distribution to lop off around $500 million from the annual expense side within three years. SAB and TAP also expect the move to boost both companies' EPS within the second year after integration is complete.

Voting interest in MillerCoors will be split 50/50, and the new company will be chaired by Peter Coors of Molson Coors. SABMiller, the larger of the two, will have a 58% financial interest.

Continue reading Molson Coors (TAP), SABMiller (SBMRY) to combine forces in U.S.