The DCV Merger

Anheuser-Busch “is among the global company’s largest and most technologically capable breweries” (About, n.d.). On Anheuser-busch.com, you can find a lot of information about the company and their products. The headquarters of Anheuser Busch is located at One Busch Place St. Louis, MO 63118 (About, n.d.). The most known beer families that they produce are the Budweiser and bud light Family. There are numerous brands that Anheuser-Busch produces aside from Budweiser and Bud light. Initial searching for Bud Light Company because most of my family is enthralled by this beer, and upon further researching the beer brand, it was surprising to find that it was actually owned and manufactured by another company, Anheuser-Busch, that also manufactured

According to the researchers the increased value results from an opportunity to utilize a specialized resources which arises solely as a result of the merger (Jensens & Ruback, 1983; Bradle, Desai and Kim , 1983). For creating operational and financial synergies managers believe that two enterprises will be worth more if merged than if operates as two separate entities. Thus, the two companies, A and B:

Mergers and takeovers are forms of external growth within a business. External growth occurs when one firm decides to expand by joining together with another. A takeover specifically refers to the gaining control of a firm by acquiring a controlling interest in its shares (51%). Merger, on the other hand, means the joining with another firm to form a new combined enterprise, shares in each firm are exchanged for shares in the other.

Merging with another organization has downfalls of destroying wealth from the merger. Considering the buying price is important when merging, spending too much on the merger will impound the value after the merger. Some mergers do not create wealth so capital is lost through the merger. There is no guarantee of financial gain and every formula considered with focus, just as with an acquisition. The final decision dictated by the variables. One company merging with another company takes the debt and losses of those companies in the new formed company.

In regards to business-level strategies and overall cost leadership, Anheuser-Busch is the undeniable industry leader when it comes to beer sales. Even if Anheuser-Busch beers aren 't the cheapest, they still are bought for their quality and Anheuser-Busch has gained tremendous market share for this. As for their focus, Anheuser-Busch focuses on a broad segment of customers producing a variety of beers for a variety of budgets to suit all personalities ' needs. Their differentiation factor is that even though Anheuser-Busch produces such cheaper beers as Budweiser and Bud Light, they also produce premium, more expensive beers like Bare Knuckle Stout and Shock Top Belgian White. Anheuser-Busch produces over 100 different brands of beer and

Anheuser Busch InBev which owns Budweiser presently distributes more than 400 million hectoliters of beer on an annual basis. What is interesting is that Anheuser Busch distributes roughly 90 percent of the American beer market domestically. This shows that the general beer consumption around the United States is dominated by this company as a whole. This should be something that this company can have pride in.

Anheuser-Busch Companies, Inc. continually seeks opportunities to maximize shareholder value and increase efficiency. Through their extremely effective marketing

When companies combine/merge the whole objective is to gain new opportunities, gain market share, grow the business, to become more innovative and to improve product offerings, utilizing/sharing the existing resources and data. From the case

Anheuser- Busch is the largest beer distributing company in the world. This is because over the years dating back to 1852 they have been pioneers in both their product production and distribution. Over the years they have faced a lot of criticism and setbacks. Most notably during Prohibition from 1920 through the early 1930s. In 2008 they were bought by the European company InBev and currently hold 49.6% of the market share. Today through the modern era they have also been one of the most successful companies when it comes to marketing their products.

Anheuser-Busch is best known for the world’s two top-selling beers, Bud Light and our flagship brand Budweiser. Operating 12 breweries within and 15 breweries outside of the United States, Anheuser-Busch brews more than 40 varieties of beer and alcohol beverages.

Anheuser-Busch Inbev is one of the largest breweries in the world. “Currently, Anheuser-Busch InBev has a product list of more than 200 beers, including global best-sellers Budweiser, Stella Artois, Beck’s, multi-country brands like Leffe and Hoegaarden, and strong “local jewels” such as Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, Sedrin, Cass, Klinskoye, Sibirskaya Korona, Chernigivske, and Jupiler, among others that have helped to make the company so successful. In addition,

Although sales of premium brands have fallen in a steady response to the growing popularity of the craft beer. The industry revenue has been stable over the past 5 years. As a result, from 2011 to 2016 the industry revenue is expected an increase and growth annually at 6.7 percent over the five years,with a total of $39.5 billion . (IBISWorld iExpert) In the long-term, these numbers are expected that grow 0.9 percent annually within the next five years. The potential growth will be seen in the traditional and premium beer sector. As a response, the giant companies in the industry Anheuser-Busch InBev and MillerCoors look forward into the merges and acquisitions as a strategy to maintain market dominance. The strategy is based on the

Merger: It is the blending of two companies to form a new company where the identity of one of the firms will be lost.

Mergers are referring to the consolidation of two companies. After the merger the two companies became one but acqusition is different than merger because in the acqusition the firm which acquiries the other firm stays solid and the other firm becomes a part of the acquirer. In the mergers the concept which is often used is discounted cash flow method(DCF). This method is for valuation of the companies. There are both some advantages and disadvantages for Discounted Cash Flows. The advantages are the model allows for changes in cash flows in the future, the cash flows and estimated value are based on forecasted fundamentals and the model can adapted for different situations. Just like its advtanges there are also some disadvantages. These

In merger: The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stocks. Two companies become one, decison is mutual. They are not idependent anymore