Could it happen?
It was released Wednesday that the world’s largest brewer, Anheuser-Bush InBev, has approached the world’s second-largest, SABMiller about a takeover. This means that Budweiser, Corona, Miller, Stella Artois, Peroni and Pilsner Urquell would possibly all be made under the same roof. This is not just huge news for American craft beer brewers and fans, but those worldwide. While no official offer has been made, the beer world is still buzzing.
As many speculate that a possible deal will face harsh anti-trust scrutiny in North America, others predict less strict processes across South America, Europe, Asia and Africa. According to The New York Times, authorities “might require the companies to divest some brands or other assets.” Reuters said the deal “would combine AB InBev’s dominance of Latin America with SABMiller’s of Africa, both fast-growing markets as well as their breweries in Asia.”
The Times also says the deal “would create a company with $69 billion in annual revenue and a stock-market value exceeding $276 billion.” This isn’t just Big Beer, this is Mega Beer. For now, this only an approach. No deal or firm offer are in place.
There have been rumors of such a deal for many years now, so the likelihood of this deal passing is still up in the air. Reuters spoke with a source close to SAB who couldn’t speculate what their reaction would be should an official offer be made.
So for now, the world is waiting and watching. We’re all familiar with Big Beer’s takeover tactics of craft brands such as Goose Island and Elysian, but this is another level.
Perhaps a bit of solace can be found in this excerpt from Reuters:
“AB InBev and other top brewers are trying to move into new markets as they look to shrug off weakness in North America and Europe, where consumers increasingly choose craft beers made by independent players or wine or spirits.”
Do you think it will happen? What will the repercussions be for the beer world?
