The world’s largest brewer, AB InBev, sold assets
The beer company AB InBev is selling one of its divisions, which is engaged in the production of packaging. The transaction amounted to 3 billion dollars. The buyer is a group of institutional investors, including Apollo Global Management.
Anheuser-Busch InBev, the world’s largest brewer, put up for sale its 49.9% stake. Now the plants in the United States, which produce metal beer containers, go to a group of investors. The terms of the deal specified that the company retains control over the implementation of production operations. In addition, in 5 years after the sale of its business share, AB InBev may buy back its division.
The proceeds from the sale will be used to eliminate debts, which appeared after the acquisition of SABMiller. The latter is also a beer producer.
InBev has a global market share of 28% and produces beer under various brands, including Hoegaarden, Stella Artois, Budweiser, Corona and others. In addition, the company sells about 500 local brands. The brewery’s annual variation is more than 60 billion liters.
AB InBev was founded in 2008 as a result of the merger of two companies – the Belgian-Brazilian InBev and Anheuser-Busch from the United States. At that time they were the leaders in the global beer production market.
InBev was also formed from two companies in 2004. The first of the merged breweries was Interbrew, which had assets in Canada and the European Union. It was created in 1987 in Belgium by absorbing local producers, among which was Stella Artois. In 1995 a Canadian company joined this business, and 4 years later Interbrew established SUN joint venture in Russia. In the period from 2000 to 2002, German and British companies joined the business, including Beck’s, which was the market leader in Germany.
The second company AmBev from Brazil was created in 1999 by merging two major players in the local market, which brewed beer since the 19th century.
Anheuser-Busch has its history since 1852 and is known to connoisseurs of the heady beverage by its brand Budweiser. In the early 2000s, the company took the third position in the Chinese market, which was achieved through the purchase of local breweries.
In 2013, AB InBev acquired the entire package of shares of the company from Mexico, which produced the Corona brand, the transaction amounted to about 20 billion dollars.
Two years later, the British company joined the corporation, the acquisition was valued at 107 billion dollars. The deal implied the approval of antitrust authorities and required both breweries to get rid of a number of assets.