Anheuser-Busch accepts $52 billion offer from InBev
July 14, 2008 by Tisa Silver
Filed under Finance
Belgian brewing company InBev announced that it will purchase Anheuser-Busch for $52 billion.
Anheuser-Busch is the North American brewing company responsible for making Budweiser AKA the King of Beers.
InBev has been courting Anheuser Busch for quite some time, but had to up the ante in order to gain the approval of its directors. In June, InBev offered Anheuser Busch shareholders $65 per share and the offer was rejected. Today’s deal amounts to roughly $70 per share.
Anheuser-Busch has its headquarters in St. Louis, Missouri and according to InBev, it will remain there. All North American breweries will remain open as well. I am sure that gives AB workers some relief as many usually expect acquisitions to result in workforce reductions. AB already had existing plans to cut just under 2,000 jobs to combat rising costs and stagnant domestic sales.
The combined companies will create the world’s largest brewer. Representatives of each firm expect the deal to be completed by year end.
