Recently Anheuser Busch has been proposed a bid by InBev, a Belgium-Brazilian company, which has offered $65 dollars per share for the now $60.43 A-B . However A-B has been looking into ways to make itself too expensive for InBev to purchase. One of these ways has been through talks of merging with the Mexican based Modelo. A-B already owns 50% non-voting equity in the Mexican company. This attempt to make A-B too expensive for InBev has sped up the process and also added extra pressure to the American beer company. With this in mind if A-B does happen to merge with Modelo and increase its value this could potentially mean that the Miller Chill brand would have a much harder time competing with competitors like Corona and Pacifico which are both owned by Modelo.
Monday, June 16, 2008
A-B discusses merger with Modelo
Recently Anheuser Busch has been proposed a bid by InBev, a Belgium-Brazilian company, which has offered $65 dollars per share for the now $60.43 A-B . However A-B has been looking into ways to make itself too expensive for InBev to purchase. One of these ways has been through talks of merging with the Mexican based Modelo. A-B already owns 50% non-voting equity in the Mexican company. This attempt to make A-B too expensive for InBev has sped up the process and also added extra pressure to the American beer company. With this in mind if A-B does happen to merge with Modelo and increase its value this could potentially mean that the Miller Chill brand would have a much harder time competing with competitors like Corona and Pacifico which are both owned by Modelo.
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