Anheuser-Busch sold to In-Bev for 52 billion dollars(Updated with spiral effects)

[jw]

Its a sad day as we lose another American company that was and is a symbolic Icon of what American heritage and loyalty stood for......

story from WSJ

Letter from August Busch (or email)

A MESSAGE FROM AUGUST A. BUSCH IV

__________________________________________________ _________________



July 13, 2008

To:

Our business is made up of people who are very proud of what we’ve built together over 150 years, and the name “Anheuser‑Busch” stands for something important to all of us. Now, we have a groundbreaking agreement that honors that hard work and tradition as it takes us in new directions.

Anheuser-Busch has agreed to combine with InBev to become a new, strong and global company – Anheuser-Busch InBev. The directors thoroughly examined all possible alternatives and ultimately accepted this agreement, which provides additional and certain $70 per share immediate cash to investors. The agreement also combines two companies with a good strategic and geographic fit to form a business able to provide employees, wholesalers and other stakeholders with excellent opportunities for future growth. We have just issued a press release moments ago announcing this, see copy below.

I have a great sense of energy and excitement for the bright prospects of this new company. This will be a truly global brewer with a substantial business base in countries around the world. The global branding this new business can provide for Budweiser will strengthen the business and the brand in all locations.

Our business is based on great brands and great people, and that will not change with this new company. It will be up to us to maintain the loyalty of the consumers, retailers, wholesalers and suppliers we have worked to please over the years. We have attained great momentum with our brands. I know you are a team of professionals who will never let up against competition and will continue to deliver strong sales for the new company, just as you had for Anheuser-Busch.

The new business is best equipped to compete in a global industry. In considering this agreement, the board determined that $70 per share offered our shareholders full and fair value. But I’m pleased we also found a combination that could best protect the Anheuser-Busch business and the many people it touches – our employees, our wholesalers, our communities. To ensure a seamless transition and to reflect our ongoing partnership, InBev has agreed that, the Board of Directors of the combined company will be comprised of the existing directors of the InBev Board, myself, and one other current or former director from the Anheuser-Busch Board.

Let me emphasize that this is a friendly business agreement. I have come to know Carlos Brito over the past several years through our business agreement in the United States and in our previous exploration of joint business opportunities. He is a strong leader with high aspirations for how far we can take our business together. I respect him and he has my firm backing on these plans and in the operation of the future company.

Anheuser-Busch helped build a healthy three-tier wholesaler system in the United States by appointing independent business people, ushering in perpetual ownership, exclusive territories and quality standards that successfully drove long-term growth and value for all parties. The new Anheuser-Busch InBev shares those same core beliefs that wholesaler profitability and growth are critical to the new company’s success.


I know you will have many questions, and the team will be working to answer them for you as soon as possible. I am convinced that InBev will live up to the public commitments they have made about the future operation of the new company.

This has been an emotional decision for me. But I believe in this new company and see a better future to carry forward the traditions of Anheuser-Busch.

August A. Busch IV

That leaves Sam Adams, Yeungling, and many young upstart Micro-Brews as the only true American beers left......

[richieb1971]

I lived in STL a few years ago and i know this is a hard hitting smack in the face to alot of people of that city.

$50 billion is alot of money though, lets hope it gets invested in the right places.

[jw]

The actual Busch family only owned about 20% which is about 9.98 billion dollars.....Not a shabby payoff....
Warren Buffet bought into the company back in 2005 and is rumoured to make just short of 646 million from the deal as he was the largest shareholder

[Beta Man]

I was always a micro-brew guy anyways, but the company that bought them (too lazy to read/look up) is the one that owns Stella Artois right????

[arush5268d]

They better not mess up my favorite beer!

[scweb13]

Actually, it's now reported to be $52B.

[jw]

Originally Posted by Beta Man

I was always a micro-brew guy anyways, but the company that bought them (too lazy to read/look up) is the one that owns Stella Artois right????

what microbrew? A-B has been buying up alot of them as they see that the market is trending in that direction. Cant rely on Budweiser as it has been steadily declining for years now

[jw]

Originally Posted by scweb13

Actually, it's now reported to be $52B.

they edited their story, It was 49.91 this morning...Sorry

[Beta Man]

Originally Posted by jwbbud

what microbrew? A-B has been buying up alot of them as they see that the market is trending in that direction. Cant rely on Budweiser as it has been steadily declining for years now

Well... Great Lakes Brewing Company is a good one.... (locally) I really like Bell's out of Kalamazoo MI. and I like Brooklyn Beer Comp. Fat-Tire, Harpoon, etc... there are a lot of them I guess... I'm sure there are a bunch I can't think of right now.

[jurassic_pork]

Well reading some of the stories it looked like Anheuser-Bush was fighting the sale and it appeared like some sort of hostile take over and the board finally had to give in to the bid. Those shareholders were probably taking a beating in the market on wanted to get paid here.......many politicians were not happy with this either....

[sssick]

Does this have to be approved by any government agencies for monopoly reasons? Or is it not needed if it is a foreign company buying an American company?

[jw]

Originally Posted by sssick

Does this have to be approved by any government agencies for monopoly reasons? Or is it not needed if it is a foreign company buying an American company?

foreign company, doesnt fall under our laws in that aspect
plus there are tons of beer companies

[Josh]

That's what happens when you have a weak dollar. It makes American goods - and companies - a whole lot cheaper.

[Aaron]

This Bud's for EU.

[Beta Man]

Originally Posted by Aaron

This Bud's for EU.

That, is wit beyond your years! I got a good laugh from that... thanks.

[jw]

Originally Posted by Josh

That's what happens when you have a weak dollar. It makes American goods - and companies - a whole lot cheaper.

So true, why do you think we have a Nintendo shortage

Originally Posted by Aaron

This Bud's for EU.

LOL, good one

From that I know that !nBev is all about the bottom line, I wonder if they will phase out the theme parks and the Clydesdales? They are icons for america, but do they mean anything to them to make it worth the millions of dollars spent yearly on them? Food for thought

[jurassic_pork]

Originally Posted by jwbbud

So true, why do you think we have a Nintendo shortage

LOL, good one

From that I know that !nBev is all about the bottom line, I wonder if they will phase out the theme parks and the Clydesdales? They are icons for america, but do they mean anything to them to make it worth the millions of dollars spent yearly on them? Food for thought

I would say very high probability on the theme parks being sold or spun off....the Clydesdales are still part of the beer angle so I think they would run with it.

[jw]

Originally Posted by jurassic_pork

I would say very high probability on the theme parks being sold or spun off....the Clydesdales are still part of the beer angle so I think they would run with it.

That used to be one of my favorite perks when I worked there, they had a pass where 4 people could get in free, then a few years later they did away with that and only allowed the employee free access. I perfer Kings Dominion as i enjoy roller coasters and Busch Gardens is more family oriented

[Josh]

Just five years ago, a Euro could buy 1.13 US Dollars. So that $50B bid would cost InBev 44.24B Euro.

Today, a Euro can buy 1.59 US Dollars, meaning that $50B bid only cost them 31.45B Euro.

That's a sayings of approx 12.79B Euro or 25% less!

[jw]

Originally Posted by Josh

Just five years ago, a Euro could buy 1.13 US Dollars. So that $50M bid would cost InBev 44.24M Euro.

Today, a Euro can buy 1.59 US Dollars, meaning that $50M bid only cost them 31.45M Euro.

That's a sayings of approx 12.79M Euro or 25% less!

didnt look at it like that, explains why import beer is so expensive

BTW can you change the thread title to 52 billion, the WSJ updated their article from this morning