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Tim Travis
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Tim Travis is a veteran deep value investor and money manager. Travis has extensive experience in traditional investments such as stocks and bonds, in addition to having a unique methodology of combining options and distressed investing with value investing to generate income, reduce risk, and... More
My company:
T&T Capital Management
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T&T Capital Management Blog
My book:
Learn to Treat Your Portfolio as a Business
  • Divestitures Likely In Modelo Deal-WSJ 0 comments
    Jun 26, 2012 4:17 PM | about stocks: BUD

    The Belgian brewer Anheuser-Busch Inbev's possible acquisition of the remainder of Grupo Modelo is quite likely to draw antitrust scrutiny, as the combined company would control in excess of 50% of the U.S. beer market. While the company could divest some of its inferior brands to offload market share, the costs of doing so should be strenuously considered. While it does seem that Inbev is paying a relatively high price for Modelo, the assets are exceptional, and the management team at Inbev has a track record for cutting fat, and improving margins. I'd certainly give them the benefit of the doubt on this acquisition. I believe that additional distribution of Modelo's portfolio will have a tremendous impact on boosting market share especially for brands such as Model Especial. Hopefully for Inbev's sake this doesn't turn in to a costly production where ultimately the deal falls apart do to antitrust issues like the AT&T and T-Mobile deal did.

    http://online.wsj.com/article/SB10001424052702304458604577488953216933914.html?mod=business_newsreel

    Stocks: BUD
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