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Anheuser Busch Inbev SA NV (ADR): BUD Selling Off Brands for $7.8B

The deal will help make space for the company's $100B merger

By Karl Utermohlen, InvestorPlace Writer

http://bit.ly/2hrK1J2

Anheuser Busch Inbev SA NV (ADR) (NYSE:BUD) has announced the sale of some of its Eastern European brands.

Anheuser Busch Inbev SA NV (ADR)Japanese company Asahi Group is acquiring a slate of brews that belong to the company for 7.3 billion euros, amounting to about $7.8 billion. The move is part of a larger effort by Anheuser Busch to make regulators happy as the company is planning another massive deal.

Its proposed acquisition or merger with SABMiller has raised some eyebrows from regulators due to the massive market share in the global beer market that the combined company will have. The deal is worth around $100 billion.

Anheuser Busch’s deal with Asahi will net the Tokyo-based company brewing assets in the Czech Republic, Slovakia, Poland, Hungary and Romania. These beverages and breweries were previously owned by SABMiller.

The move will also give Asahi the breweries and intellectual property rights to Pilsner Urquell, Kozel and Tyskie, pending European regulation. Asahi previously acquired Peroni and other European assets from Anheuser-Busch for $3 billion.

Both companies are looking to expand as they now hold more of the world’s major beers. These mergers and acquisitions come at a time when consumers demand more from their beers as small craft beers from microbreweries are on the rise.

Other deals that will help make the Anheuser Busch-SABMiller merger a reality is the $12 billion deal that will see the latter’s 59% stake in MillerCoors go to Molson Coors Brewing for $12 billion.

BUD shares gained 1.2% Tuesday.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/12/anheuser-busch-inbev-sa-nv-adr/.

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