Слайд 15 Things You Need to Know About AB InBev's Acquisition of
SABMiller
By Sean O’Reilly
Слайд 21. $100 Billion Mergers Don’t Happen Everyday
Proposed acquisition of SABMiller by
AB InBev comes with a hefty $107 billion price tag.
Would rank as 4th biggest acquisition of all time, just ahead of Pfizer’s $90 billion purchase of Warner-Lambert, if completed.
Combined entity would be the world’s largest brewer by multiples.
Слайд 32. A Giant is Born
Both companies are no strangers to huge
mergers:
AB InBev is the product of a succession of mergers, starting with Dutch brewer Interbrew’s 2004 acquisition of Brazilian AmBev
SABMiller was created when South African Breweries purchased Miller Brewing in 2002.
Even as separate entities, both are enormous enterprises
Слайд 42. A Giant is Born
AB InBev is the world’s largest brewer
already, with over 200 brands and a presence in over 30 countries
Global market market share of approximately 21%
SABMiller is the world’s second largest brewer
Dominant in Africa and South America
Strong presence in U.S. through 58% ownership of MillerCoors
10% Global market share
Слайд 53. Antitrust Concerns
Acquisition likely to attract considerable attention from antitrust regulators
all over the world
Particularly true in the U.S.
Though its 58% ownership of joint venture Miller Coors, SABMiller controls 26% of U.S. Beer Market
AB InBev, thanks to its 2008 acquisition of Anheuser-Busch, currently controls 44% of U.S. beer market
Слайд 63. Antitrust Concerns
U.S. Justice Department judges competitiveness with the Herfindahl-Hirschman Index
(HHI)
Index calculated by squaring market shares of each competitor and summing the products
U.S. beer industry currently has HHI of approximately 2,696
Justice Department prefers markets to be below 2,500
Combined SABMiller/AB InBev would have 68% market share in the U.S.
Would send U.S. beer market HHI to unheard of 5,366
Слайд 73. Antitrust Concerns
Anticipating U.S. Justice Department objections of acquisition, company plans
to sell 58% stake in Miller Coors to Molson Coors Brewing for approximately $10 billion
Selling SABMiller’s entire U.S. operation points investors to real reason for this merger
Слайд 84. Why Merge?
Merger has considerable benefits, shifting focus of both companies
further towards emerging markets
AB InBev distributes beer in over 100 countires and has bottling operations in 25
Notable Markets: The United States, China, Brazil, Europe, and Mexico
SABMiller sells beer in over 80 countries
Dominant in Africa with strong South American and Asian presence
Слайд 95. Likely Outcomes
Preliminary sale of 58% stake in Miller Coors to
Molson Coors recently announced
Eliminates major antitrust objections from U.S. Justice Department
Formal acquisition announced on November 11, 2015
Deal likely to pass with regulators due to lack of overlap in specific markets
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