Bud-SAB tie-up hinges on a scramble for Africa

September 24, 2015

Cost-cutting will help brewer AB InBev justify a $110 billion strike at SABMiller. But a convincing top-line growth story is required if existing equity investors are to roll into the new entity. There are several levers. Africa is the most important.

Bud-SABMiller investors punch drunk on synergies

September 18, 2015

Markets have added $30 billion to the two brewers’ value in response to a mooted merger. A simple analysis suggests that’s akin to saving at least 15 percent of SABMiller’s revenue – close to what AB InBev got from its last big deal. It’s not impossible, but it’s a tall order.

Bud’s mega-beer deal will brew global reset

September 16, 2015

After years of speculation, AB InBev has approached SABMiller about a takeover that could value the combined entity at around $280 bln. The giant would complete global consolidation of the brewing industry and lead a new round of regional disposals, spins and amalgamations.

Heady Topper points to beer business peak

November 13, 2014

The craze for this small-batch double IPA illustrates the potential for craft brewers to snaffle up both market and dollar share from Big Beer. That’s why AB InBev and others are on the prowl to buy indie brands. It’s great for drinkers, but makes for a very competitive dynamic.

U.S. trustbusting would make a great monopoly

November 26, 2013

The Justice Department is beating the pants off the Federal Trade Commission with pushback on AT&T, US Airways and AB InBev deals. The FTC has scored points protecting consumers. Leaving antitrust to DoJ would reduce costly overlap and let the agencies play to their strengths.

AB InBev deserves premium-strength rating

February 26, 2014

The Budweiser brewer seems to pump as much cash as beer out of the business. Latest results suggest its key markets may be improving too. Its well-oiled M&A machinery may flatter the underlying long-term reality. But it is hard to see why investors’ taste for the stock will wane.