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DealZone

Behind the deals and deal-makers

13:57 June 12th, 2008

This Bud’s for Who?

Posted by: Phil Wahba
Tags: DealZone

Every country needs its national symbols. A national anthem, a currency, a stock exchange, even a beer. Few symbols are as steeped in Americana as Budweiser, the ubiquitous beer found at countless dive bars, stadiums and tailgating parties across these United States.

But soon the brew may fall into the hands of InBev, the Belgian behemoth that launched a $46 billion proposed takeover offer in an effort to create the world’s largest brewer. Will Bud fans mix well with InBev’s Stella Artois and Beck’s brands, or its Brazilian unit AmBev, which brews Skol, Brahma and Antarctica. How far from middle America can you get?

The weak U.S. dollar and economy has made a number of American icons vulnerable to foreign takeovers– everyone from major banks needing Middle Eastern sovereign wealth funds to bail them out, to Chrysler’s unhappy, defunct marriage with Germany’s Daimler.

But a takeover of the iconic Bud might be a step too far and already has some Americans screaming blue murder. 

“Rather than being celebrated as proof of America’s marketability overseas, Inbev’s all cash buyout of Anheuser-Busch is a national disgrace,” said Peter Schiff, president of brokerage firm Euro Pacific Capital.

Perhaps the biggest challenge for Bud will be how to promote itself if it falls into Belgian and Brazilian hands. After all, it played up its flag-waving American-ness to the hilt after rival Miller merged with South African Breweries.usflag.jpg

Somehow, “Dit Bud is voor jou,” “Esta Bud e para voce” and “Ce Bud est pour vous,” don’t quite have the same ring. 

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