Corporate Industry : A Global Market Governed By Cross Border Takeovers And Growth Through Acquisitions

1855 Words8 Pages
In recent decades the brewing sector, despite its long tradition as local industry, has start to follow the increasing internationalization of economic activities and the globalization of markets, becoming now a global market governed by cross border takeovers and growth through acquisitions. As Ebneth et al (…) pointed out in their paper, although globalization in this sector happened slower than in similar businesses, in recent years, the number of acquisitions and mergers have been growing consolidating the industry. This development was caused in particular from the necessity of larger brewers to seek growth via acquisition of other breweries and/or by aggressive participation in developing markets as they faced low prospects for…show more content…
With this move, AB InBev will not own SABMiller U.S. businesses. According to Bloomberg, AB Inbev’s grow it is set to slow down in the next five years. With this takeover they could take advantage accessing the emerging markets in which SABMiller operates, such as in Latin America and Africa. The new company will be ranked first or second in 24 of the world’s biggest beer markets. With profits of approximately $25bn, according to Exane BNP Paribas, the enlarged brewer will become the world’s largest consumer-staples maker by earnings. 1.2 The Companies 1.2.1 Anheuser-Bush InBev AB InBev manufactures, distributes and sells beers, as well as malt and non-alcohol malt beverage brands. The company is based in Leuven, Belgium, with shares trading on the Brussels Stock exchange and a secondary listing on the New York Stock exchange. Anheuser-Busch InBev is the largest global brewer with around 155,000 employees in 25 countries worldwide, in 2014, AB InBev realized $47.1 billion revenue. The company is geographically diversified working on both developed and developing markets. In the beer portfolio we can find global, multi-country and local brands for example they own Corona, Budweiser, Stella Astois, Leffe, Beck’s, Bud Light, Modelo Especial and others. 1.2.2
Open Document