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Old 04-06-2012, 02:48 PM   #1
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Mar 2011
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Hows is this to hear on the morning drive to work? There is a rumor that AB will buy Miller Coors for up towards $80 billion. That would be 80% of the US beer market. It seems that this is just speculation and no proof, but if it was true? How would it change the beer market? Being in the St Louis metro area, this will be on our news for quite a while.

BMC becomes just AB?

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Old 04-06-2012, 02:52 PM   #2
Nov 2011
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I don't think the anti trust people would allow that to happen. Then again, I am no expert on commerce.
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Old 04-06-2012, 02:59 PM   #3
Feb 2012
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Old 04-06-2012, 03:13 PM   #4
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So...inBev owners also own Burger King, and because it's going public, Credit Suisse analysts believe that the influx of cash will cause them to buy out SAB Miller? I'm not saying it's impossible, but I love how these ideas get spun into "AB is buying Miller" analysts.

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Old 04-06-2012, 04:01 PM   #5
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Mar 2011
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There were some more specific rumors a few months ago. I believe it involved ABI buying SabbMillerCoors with the North American part of MillerCoors breaking off or something. I don't remember the specifics, unfortunately.
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Old 04-06-2012, 04:18 PM   #6
Mar 2011
Chester, IL
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If i remember the thread correctly from a few months ago on here. It said in-bev was buying SAB. SAB would sell miller to molsen-coors to avoid the anti-trust laws in the US.
So basically there will only be 2 major holders left, In-bev and molsen-coors-miller.

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Old 04-06-2012, 04:23 PM   #7
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There is a lot of potential movement in the industry right now... Possible Molson Coors / Starbev merger?

Molson Coors to buy StarBev for ?2.65bn

Source: FT

By Anousha Sakoui, Louise Lucas and Alan Rappeport

Apr 3rd

Molson Coors, the US-Canadian brewer whose brands include Coors Light and Carling, is to buy StarBev, the eastern European beer maker, for ?2.65bn.

The acquisition, from private equity group CVC, will help the beermaker expand as it seeks to extend sales beyond its core territories of the US, Canada and the UK. Starbev's core markets are in central and Eastern Europe.

"This is very much about growth," Peter Swinburn, chief executive of Molson Coors, said. "Our [markets] are flat and declining; these ones are growing."

He added that the deal was about buying growth and profitability: Starbev makes profit margins of 30 per cent at the level of earnings before interest, tax, depreciation and amortisation, double the level that Molson Coors achieves.

The brewer is planning to use StarBev, whose flagship beer is the Czech brand Staropramen, as a platform for growth and to sell its existing brands such as Carling. It is attracted to the potential recovery in Eastern Europe to growth rates achieved before the economic crisis.

The deal puts Starbev's enterprise value at 11 times its 2011 ebitda of ?241m. When SABMiller bought Australian brewer Foster's last year it paid a multiple of 13 times.

While the deal is expected to be earnings accretive in the first full year of operations, Mr Swinburn conceded that synergies, at 5 per cent of sales, were modest. "There's no overlap, so no natural synergies," he said.

He shrugged off concerns that Starbev operates in competitive markets. "Yes, they are split three ways but we have the number one brands in at least 50 per cent of these markets," he said.

Trevor Stirling, analyst at Bernstein Research, said it was unclear how quickly these markets could resume a growth trajectory and highlighted that the pricing environment remained difficult. "Having been owned first by ABInBev and then private equity, there is unlikely to be much low hanging fruit," he added.

For CVC, the sale represents a quick exit, having only owned the business since late 2009.

However, it will have a stake in the business going forward. Molson Coors' is financing the deal with $3bn in cash and debt, and also issuing a ?500m of convertible bond to CVC, that will allow it to benefit from any appreciation in Molson's stock in the future.

One person familiar with the sale said on Tuesday that the deal would yield several times what CVC invested in the company, and came in response to unsolicited approaches.

Anheuser-Busch InBev had the right of first offer to reacquire the business if CVC chose to sell StarBev, and was among those having considered a bid, along with Japanese brewers and western European drinks companies such as SABMiller, people with matter previously said.

ABI sold the business to CVC for an enterprise value of $2.2bn, with a further potential $800m payment dependent on CVC's return on its initial investment.

CVC was advised by Nomura and Molson Coors was advised by Morgan Stanley, Deutsche Bank and Barclays.
And the already mentioned merger:

Anheuser Busch Merging With Miller?

Source: Fox 2

by George Sells

April 5, 2012

Could Anheuser Busch be on its way toward merging with longtime rival Miller? That's what some financial analysts are predicting as a beer industry rumor is starting to gain some credibility. Many liken the concept to the Catholics merging with the Protestants, or the Cardinals and Cubs joining forces. But Bloomberg news is quoting European financial analysts who think this could really happen.

At bars like the Dry Dock in south St. Louis County, they bleed Budweiser red.

"If you want Miller, go to Milwaukee," Steve Boyer told us while sitting at the bar Thursday night.

They have been serving A-B products here since 1890. Only in the last decade did they finally allow anything with "Miller" printed on it behind the bar.

"It was a big deal," long time bartender Heidi Kveton said, "because the Dry Dock has always been an Anheuser-Busch bar, and that's all he wanted to serve."

But the talk of A-B and Miller landing under the same flag is suddenly getting serious. Bloomberg News quotes influential financial analysts in Europe, telling their customers such a mega deal may be on the way. Major investors in Inbev are putting their shares in Burger King on the block. That could free up more than a billion dollars in cach. This is an excerpt from that Bloomberg report:

""Over the past week, AB InBev's Belgian and Brazilian reference shareholders have freed up considerable amounts of cash," Wim Hoste, an analyst at KBC in Brussels, said in a note. The moves could be "a coordinated attempt to be followed by a fresh cash injection into AB InBev. We see only one brewing acquisition likely that would be large enough to warrant a capital increase, and that is SABMiller.""

"It would be a giant behemoth of beer," St. Louis Post-Dispatch beer business writer Tim Logan said. "One in every four beers drank in the world would come from this company."

And while he says this is all likely a long way from happening, it does fit the InBev pattern.

"InBev has always been an acquirer. They've grown by buying companies and the last big thing for them to buy at this point is SAB Miller. And it seems to be picking up momentum. There's been more chatter about it in the last few weeks than there had been, and where there's smoke there might be fire."

At Randall's Liquors in south St. Louis, beer buyer Dominic Martino worries about one thing: prices.

"Having a large conglomeration of beer, beer company I guess, that would control so much of the product that gets consumed in America. I think that's a little bit concerning as far as price gouging that things like that."

A-B InBev has not commented on the merger talk, and SAB Miller hadn't either until its C.E.O., Graham Mackay was hit with the question by a reporter for "Beer Business Daily," a trade publication.

"What can I say? I'll tell you what I tell my shareholders who ask the same question. Look, they would have to write a very big check indeed, something north of $100 billion and that's a lot of money in anybody's language. . There's a question of whether they can raise it in this environment. . But it's my job to make it very expensive for them."

"Not exactly a resounding 'no'" Logan mused in his Lager Heads blog on the Post Dispatch's website.

Regardless of what happens, some things are unlikely to change. Among them, brand loyalties that, in St. Louis, reach almost to the point of a moral compass.

Still sitting at the bar of the Dry Dock, Boyer dismissed the impact of a merger on his life.

"It doesn't really matter because I still wouldn't drink Miller," he said. "It doesn't matter if they'd stack it up in my truck, I wouldn't drink it."

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Old 04-06-2012, 04:42 PM   #8
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Apr 2010
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I do not drink any BMC product. For me, nothing changes.
I'm not drunk, I'm from Wisconsin.
We have been out drinking your state since 1848!

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Old 04-06-2012, 04:45 PM   #9
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Originally Posted by Zamial
I do not drink any BMC product. For me, nothing changes.
Are you sure? They own an awful lot of "small" and "craft" brands.
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Old 04-06-2012, 06:38 PM   #10
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Originally Posted by jeepinjeepin View Post
Are you sure? They own an awful lot of "small" and "craft" brands.
The commercial interest the larger companies have put into the smaller, craft breweries is really a great thing, whether people like to admit it or not. It helps the smaller breweries stay afloat and running through hard economic times with such a large backer. Then at the same time, people who drink BMC, see that their favorite brewery has this "Goose Island, Shock Top, or Blue Moon" stuff... Hmm, try it, "Wow! This stuff is great!" and it introduces the consumer to craft beer. Which in turns opens them up to try beers from other breweries.

However, it really makes me respect more the smaller breweries who have made it this long fighting against the larger corporations. However, that fight has made some breweries to fight by forming their own corporations, such as Craft Brewers Alliance and North American Breweries. Although I wouldn't doubt it if ABInbev and Miller-Coors have some ownership in either of those...

As for ABInbev Purchasing Miller-Coors, I doubt the US would allow it due to Anti-Monopoly Laws, as for if Miller Coors were to split their US/Global operations, who gets to keep the brands/recipes?

Edit, the drawback is when ABInBev/Coors-Miller takes a controlling point and starts changing things........

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