Craft Brew Alliance (NASDAQ:BREW) stock is in the news today following an announcement about Anheuser Busch Inbev (NYSE:BUD) buying it out.
This Craft Brew Alliance news has BUD offering to pick up all remaining shares of BREW stock that it doesn’t already own for $16.50 each. That represents a roughly 125% premium over the closing price for BREW stock on Monday.
It’s worth mentioning that Craft Brew Alliance and Anheuser Busch Inbev have more than 25 years of history between them. As a result, BUD already has a 31.20% stake in BREW stock.
Andy Thomas, CEO of BREW, says this in the Craft Brew Alliance news release.
“By combining our resources, our talented teammates, and dynamic brands, we will look to nurture the growth of CBA’s existing portfolio as we continue investing in innovation to meet the changing needs of today’s beverage consumers, all while delivering certainty of value to our shareholders.”
Another thing to note about this deal is that it won’t result in a major change to how Craft Brew Alliance distributes its products. It already puts out the majority of its products through Anheuser Busch Inbev’s distribution routes via a previous deal.
Craft Brew Alliance notes that the deal still needs to go through customary closing conditions. That includes getting permission from BREW shareholders not part of BUD, as well as approval from regulators. If all goes well, the deal will close in 2020.
BREW stock was up 121.62% as of Tuesday afternoon.
