Wed, Mar. 25, 8:27 PM
- The odds of 3G Capital Partners financially backing a takeover by Anheuser-Busch InBev (NYSE:BUD) of SABMiller (OTCPK:SBMRY) were taken down a notch by analysts after the merger between Heinz and Kraft Foods was announced.
- 3G is considered a likely source of financing for the +$100B A-B would need to put together an attractive offer for its beer rival, but will be a little lighter in the wallet after the Kraft buy.
- The analyst community has been sharply divided over the last year on if the beer mega-merger is actually in the works.
Sat, Feb. 14, 10:13 AM
- Craft soda is starting to become a trend to watch closely, according to industry insiders.
- Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
- The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
- The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
- Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
- What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
- Craft beer watch: BUD, OTCPK:SBMRY, TAP, OTCQX:HEINY, SAM, BREW, STZ, OTC:BIBLF, OTCPK:BRBMF.
- Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
- Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA, FIZZ.
Mon, Feb. 9, 10:50 AM
- Anheuser-Busch InBev (BUD -1.5%) won't comment on a rumor that it's interested in acquiring Cigar City Brewing.
- The Tampa Tribune reported over the weekend that A-B had talks with the Florida craft brewer.
- The beer giant is in the awkward spot of being in a craft brewery acquisition phase, while also gearing marketing efforts toward "macro" beer.
- Previously: Anheuser-Busch InBev vs. the beer world (Feb. 04 2015)
Fri, Jan. 23, 1:56 PM
Wed, Jan. 7, 7:12 AM
- Shares of Campbell Soup (NYSE:CPB) and PepsiCo (NYSE:PEP) are on watch after the WSJ reports 3G is discussing trying to acquire a major food company.
- Sources indicate the massive size of PepsiCo deal could prompt a partial buyout or a bid in tandem with Aneuser-Busch InBev (NYSE:BUD).
- PEP +0.8% premarket, CPB inactive.
Oct. 13, 2014, 12:34 PM
- Anheuser-Busch InBev (BUD +0.7%) has considered the benefits of a merger with PepsiCo (PEP +0.6%), sources tell Bloomnberg.
- Though no talks between the consumer product giants are in the works, the culture of sector-rattling mergers at A-B keeps PepsiCo on a short list of takeover candidates.
- The most obvious synergy a BUD-PEP combination would create is a shared global distribution network which some analysts think would add more to the bottom line than a SABMiller buyout for the brewer.
Sep. 23, 2014, 9:12 AM
- Fitch Ratings says an acquisition of SABMiller (OTCPK:SBMRY) by Anheuser-Busch InBev (NYSE:BUD) that included equity funding would help the combined beer giant keep an investment grade rating.
- The ratings agency notes the tie-up would lead to only a few divestments due to the relatively limited overlap of beer brands.
- Currency risk would be increased for the brewer, notes Fitch, as a majority of the incoming cash comes in from Latin America, Africa, and eastern Europe - while the debit is denominated in euros and dollars.
Sep. 22, 2014, 9:44 AM
- The buzz from bankers at the LPC loan conference in New York City is that financing for a massive M&A deal shouldn't be a major issue in the current environment.
- The development coincides with ongoing speculation that Anheuser-Busch InBev (NYSE:BUD) is lining up an acquisition play for beer rival SABMiller (OTCPK:SBMRY).
- A bridge loan of $75B-$80B by A-B would be needed to swing the deal, according to some bankers.
Sep. 16, 2014, 9:52 AM
- Shares of Anheuser-Busch InBev (BUD -0.8%) are lower after some of the buzz over a potential merger with SABMiller (OTCPK:SBMRY) wears off. In Europe, shares of SBMRY are also tilting lower.
- Analysis of the combination of the two beer giants is nearly evenly split. Some analysts think the regulatory hurdles are too high to clear, while others maintain that outside of the U.S. and China there's not a huge amount of overlap that would draw in regulators.
- Stifel Nicolaus and Buckingham Research have both raised their price target on BUD, moving to $130 and $137 respectively.
- MillerCoors (TAP -1%) is in a holding pattern. If the mega-merger goes through, the company is nearly assured of a new owner.
- The wildcard: There's also still the chance that A-B could have the rug pulled out from under it if SABMiller improves its offer to Heineken (OTCQX:HEINY) to a level which wins over the controlling family.
Sep. 15, 2014, 9:55 AM
- Shares of SABMiller (OTCPK:SBMRY) are ripping in London trading with reports out that Anheuser-Busch InBev (BUD +3.2%) is talking to banks about coming up with financing for a bid.
- SABMiller is more vulnerable after Heineken (OTCQX:HEINY) rejected its buyout overture.
- A deal between the beer giants would require significant divestiture massaging, possibly including SABMiller shedding its interest in MillerCoors (NYSE:TAP) in the U.S.
- What to watch: A-B has to decide before the end of the year if its wants to renew a soft-drink bottling contract with PepsiCo. If the brewer declines, it could be an indication that it has its eyes on SABMiller's deal with Coca-Cola in Africa.
- SBMRY +12.2%.
Sep. 15, 2014, 7:28 AM
- Anheuser-Busch InBev (NYSE:BUD) is talking to banks on financing an offer to purchase SABMiller (OTCPK:SBMRY), according to The Wall Street Journal.
- A deal price for the long-rumored combination would be in the neighborhood of $122B.
- Beer watch: Over the weekend, Heineken confirmed it rejected a takeover offer from SABMiller.
- BUD +2.3% premarket to $113.50.
Sep. 14, 2014, 10:30 AM
- SABMiller (OTCPK:SBMRF) has been approached Heineken (OTCQX:HEINY) about a merger only to be rebuffed by the controlling Heinken family, reports Bloomberg.
- Another mega-merger within the beer industry has been widely anticipated by analysts in order to line up regional strengths and weaknesses.
- Related stocks: Anheuser-Busch InBev (NYSE:BUD), Diageo (NYSE:DEO), Carlsberg (OTCPK:CABGY), Molson Coors (NYSE:TAP), Boston Beer (NYSE:SAM).
Jul. 13, 2014, 9:45 AM
- Talk about a merger between Anheuser-Busch InBev (BUD) and SABMiller (SBMRY) has picked up again this summer with many industry insiders forecasting a deal between the beer giants will be completed this year or in 2015.
- The combination would create a beer juggernaut that would account for close to 30% of global beer volume.
- Deal on: It's SABMiller's presence in Africa and China that makes it attractive to A-B with execs knowing SABMiller's stake in MillerCoors would very likely need to be sold off to make the deal fly with regulators. Some analysts note the growth channels are vibrant enough to justify the deal premium. Massive synergies on the cost side also help make the math work out.
- Deal off: SA contributor Tim McAleenan thinks the massive amount of debt that A-B would have to take on to buy SABMiller puts a deal out of reach. Buying at a market peak is also a tricky proposition.
Jun. 10, 2014, 1:51 PM
Mar. 3, 2014, 9:21 AM
- A merger between Anheuser-Busch InBev (BUD) and SABMiller (SBMRY) makes more sense now than ever, according to analysts following the sector.
- A-B faces tough questions on where to find growth and SABMiller has a toehold in some key emerging markets.
- "You could get the numbers to work," according to SABMiller CEO Alan Clark on the potential for the mega-deal. Meanwhile, execs with A-B have been mum on the subject.
- The two beer giants line up fairly well on the global regulatory front, although SABMiller would very likely have to shed its stake in MolsonCoors (TAP).
Jan. 20, 2014, 2:30 AM
- Anheuser-Busch InBev NV (BUD) has agreed to repurchase South Korea's Oriental Brewery from KKR (KKR) and Affinity Equity Partners for $5.8B including debt.
- AB InBev sold Oriental to KKR in 2009 for $1.8B in an effort to reduce debt following InBev NV's $52B acquisition of Anheuser-Busch. As part of the deal, AB InBev had the right to buy back the operations within five years.
- AB InBev will finance the transaction with internal resources, but will also receive $320M in cash when the deal is completed.
- The acquisition heralds further consolidation in the alcoholic-beverages industry, coming just a week after Japan's Suntory Holdings said it had agreed to buy Beam for $13.6B. (PR)
BUD vs. ETF Alternatives
Anheuser-Busch Inbev SA is engaged in the production, marketing, and distribution of beer. Its brand comprises of Budweiser, Corona and Stella Artois. It also manufactures non-alcoholic beverages such as bottle water and Ice tea.
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