By Christopher Leonard
ST. LOUIS
Anheuser-Busch agreed to be acquired by Belgian brewer InBev for about $52 billion in a deal that would shift ownership of the nation's largest brewer overseas, The Wall Street Journal reported Sunday.
The deal, which is subject to shareholders' and regulators' approval, would create the world's largest brewer and create the fourth-largest consumer product company worldwide. The newspaper cited anonymous sources who said Anheuser-Busch-InBev would be the new company's name and Anheuser would have two seats on the board.
Anheuser-Busch Cos. Inc. did not return messages seeking comment Sunday evening.
The newspaper said the deal was for $70 a share, a $5 increase over the offer Anheuser-Busch rejected in June.
InBev, the maker of Stella Artois and Becks, is the world's second-largest beer-maker behind SABMiller. Anheuser-Busch is by far the largest brewer in the U.S. with more than 48 percent of the market share.
It wasn't immediately clear how long approval might take from regulators and shareholders. Several Missouri politicians have expressed concerns about the merger — especially how it would affect the approximate 6,000 people employed by Anheuser-Busch in St. Louis.
InBev has said it plans to use St. Louis as its North American headquarters, and that it will keep open all 12 of Anheuser-Busch's North American breweries.
InBev SA announced its intent to try and purchase Anheuser-Busch on June 11. The Anheuser-Busch board initially voted against the merger, calling the initial $65 per share offer too low.
That prompted much squabbling between the companies over the past few weeks. InBev filed a motion seeking the removal of all 13 Anheuser-Busch board members; Anheuser-Busch filed suit calling the InBev effort an "illegal scheme" that threatened to defraud Anheuser-Busch shareholders. Among other things, the suit noted that InBev failed to disclose it operates a brewery in Cuba.
So it was with some surprise when reports surfaced on Friday that the two companies were sitting down for merger talks, reportedly after InBev upped its offer by $5 to $70 per share.
The merger, if completed, will bring to an end one of the most iconic names in American business, and a name synonymous with St. Louis. From college buildings to offices to the stadium where the Cardinals play, the Busch name is virtually everywhere in the Gateway City.
Eberhard Anheuser acquired the Bavarian brewery in 1860 and renamed it E. Anheuser & Co. His son-in-law, Adolphus Busch, joined the company in 1864 and it was eventually renamed Anheuser-Busch.
The company survived Prohibition by selling products ranging from ice cream to root beer.
In addition to opposition from politicians and civic leaders, at least two Web sites sprung up opposing the merger. SaveBudweiser.com claims to have more than 60,000 signatures from merger opponents. SaveAB.com hosted a recent anti-merger rally that drew hundreds to downtown St. Louis.
InBev has not said if layoffs will occur as a result of the merger. But some cutbacks seem likely.
Even without the merger, Anheuser-Busch said last month it planned to cut pension and health benefits for salaried employees as part of an effort to slash $1 billion in costs by the end of 2010. The plan called for offering early retirement to 1,300 salaried workers 55 and older.
The cost-cutting effort — dubbed "Blue Ocean" by the company — was part of a strategy to fend off the merger.
The beer industry has been consolidating in recent years amid rising costs for transportation fuel and key ingredients.
Delicious
Digg
Reddit
Facebook
Google
Yahoo
You are right, donvabeach
You are right, donvabeach, and I went and bought a Ford for the very same reason! But I will never make that mistake again.
Americans, if you want Americans to buy American, MAKE QUALITY PRODUCTS! I don't care that they cost a little more, but many American Made products are just as crappy as the Chinese stuff, they just cost more. American businesses need to stand behind the product too! Ford basically told me something stupid like, my engine fell out because I used the wrong windshield wipers! So I wrote to Ford who told me, "Tough luck!"
Never will I ever buy a Ford again. A friend had the same trouble with Dodge, so no more "American" cars for me.
Sam Adams
What about Sam Adams? I think they have good beer. They are still American aren't they.
Keeping with Rodrigo's tanking dollar, tanking economy theme
"Today, President Bush lifted the presidential ban on offshore drilling that was imposed by his father, the first President Bush, 18 years ago. But hey, remember Bush's dad also said invading Iraq would be a huge disaster, and cutting taxes would ruin the economy. So what the hell did he know?"
miller owns coors and molson
go to coors.com. its millercoors.molson bought out coors, miller bought out molson.
offical name is sab miller molson coors. that just sounds strange but hey came from thier site. hows bout a yinger? doubt thier selling out they just got big after being a local brewery for over a hundred years. even got an eagle on the bottle. by the way footballs coming go birds! im from philly if u hadnt figured that out yet. AND YES I HATE MCINJURED!
RE: Switching to miller
Navy Man said "I will probably switch to Miller I guess. I believe that I am probably not the only beer drinker that is thinking the same thing.
Miller is a subsidiary of SAB-Miller, a South African company.
(SAB stands for South African Breweries)
Thought you'd like to know, since you seem to be switching for 'patriotic' reasons. There's always Coors...(oh, wait, MolsonCoors is headquartered in Canada.)
jmo
Skunky beer
Skunky beer is spoiled beer Navy Man , they were passing off bad goods on the government , what a surprise that AB would take advantage of our men/women in uniform . Next I'll be hearing that friends of people in high places are profiteering off the war in the Middle East , now that would be a shock !
Skunky beer
Skunky beer is spoiled beer Navy Man , they were passing off bad goods on the government , what a surprise that AB would take advantage of our men/women in uniform . Next I'll be hearing that friends of people in high places are profiteering off the war in the Middle East , now that would be a shock !
Donvabeach, you are 100%
Donvabeach, you are 100% correct in your post. The only problem is that we have little control over it. The only thing we can really do is not borrow any more money and live within our means. We now live in a global economy. Hope your portfolio is diversified in other countries and their stocks.
Own is not the most accurate term either
Calling Busch owned by a Belgium and Miller by a African company isn't exactly accurate either. The companies are really owned by all the stock holders which are all over the world. These kind of mergers are a restructuring of top management. In this case they want to grease the wheels to get more of the 300 beer brands in more markets where they might compete better against the shift in consumer tastes toward wine and hard liquor.
I think the only difference we'll see here is in the very likely sale of Busch Gardens. There's only a few large theme park operators out there. We very well might end up with a large Disney presence in Williamsburg.
nothing new
Now AB will be owned by a Belgian Company. So what? Miller has been owned by a South African company for years. Remember the uproar when Daimler-Benz took control of Chrysler? And? We made some noise, blogging from our foreign-made computers.
You want isolationism? Really? Think were we'd be if foreign businesses were prohibited from doing business here. I mean REALLY think about it.
I, too, am saddened that a large American company with a rich history is going to foreign interests. But that's business, and you can't have things both ways.
jmo
(PS: Yellow carbonated water? That's Coors Light!)
A toast to the "King of Beers".
The Arabs buy our real estate, the Belgians buy our largest beer company, the Russians and Asians buy our debt, and the Mexicans, Asians and Indians take our jobs. Where are we going as a Nation, when these foreign vultures are picking at our bodies while we're still alive?
We don't need a multi-national fighting force to protect our vital interests, because our vital interests are starting to be sold down the river, to the highest bidder.
If we ever get beaten as a Nation, it won't be by an army, or by terrorists. It will be by Arab, Asian, Russian and European businessmen in Armani suits. All they will have to do is cut back on buying our products, and our debt. The results will make 1929 look like a financial hiccup. We better start thinking about who the real enemies of the United States are, both within, and outside of our Great Country.
Death of an American Icon
Well one of the companies that has always been an American company is getting ready to be owned by an overseas company. I am in the Navy and when I am overseas I have drank the overseas Bud and belive it or not is is not the same taste as what we have here in the states it is actually "Skunky" beer. But now that AB will be owned by an outside the US country I guess I will change up and not drink Bud Light anymore. I will probably switch to Miller I guess. I believe that I am probably not the only beer drinker that is thinking the same thing.
If you call yellow
If you call yellow carbonated water beer, that's your business! But my big issue is another American corporation being sold to overseas interests. More money exiting the US economy.
Another link in the fence!
Pretty soon Americans will have no influence at all in what happens in our own land. Foreign companies will control everything and "WE" the people will be at the mercy of career puppets (politicians) who are controlled by said companies while they lounge around in the Brothel we refer to as DC!
Nope
Bud is a global premium beer. People all around the world will pay double for it verse the local beers. The consistency they accomplish is extremely difficult and above the skills of a lot of breweries. InBev on the other hand is the Walmart of brewing companies. What they bring to the game is a total focus on efficiency over everything else. Busch Gardens is almost guaranteed to be ditched because it's not part of the beer making process.
miller or coors
Now we have to find an american beer company! Glad we didn't buy our passes to the parks! Such a shame we can't keep anything in this country!
THE PILOT WON'T TELL YOU
The real story here is not the beer. It is that the dollar is so low that it is like monopoly money to foreign investors.
cheers!
Just my opinion, but Bud drinkers in the U.S.like the fact that their beer is an American company made beer. When I was deployed over seas, it always amazed me when my buddies would buy the 'imported' Budweiser because that was 'their' beer. I don't drink AB beers, but I think a lot that do drink AB beers are getting ready to switch to another in house brand. Curious to see what others think.