Seeking Alpha

Analysis: Diageo could top Suntory's bid for Beam

  • Liberum thinks a consortium led by Diageo (DEO -1.6%) will come in with a bid to top the $16B Suntory (STBFY) is willing to pony up for Beam (BEAM).
  • The interesting part of the equation for Diageo is that if it partners up it can end up only buying the strategic bourbon and tequila lines which would lead to significant synergies.
From other sites
Comments (2)
  • Kuro1
    , contributor
    Comments (45) | Send Message
     
    One would think that Beam would be more valuable to Diageo than to Suntory. Suntory will have to retain Beam's administration, distribution and marketing infrastructure (i.e., at least in North America and Europe) since they do not have a strong functional distribution system or management structure in those markets. However, Diageo could incorporate the Beam brands and operations on a more efficient basis.
    15 Jan 2014, 12:36 PM Reply Like
  • Profitcripper
    , contributor
    Comments (93) | Send Message
     
    Suntory should have waited a couple more years for greater gift in BEAM since it has no major value at this point in time. It's brand is getting there but not there yet in the field of spirits. Actually, Altria would be the best candidate to put BEAM on the level of Diageo in the USA, imo.
    15 Jan 2014, 05:45 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs