The news has emerged the world’s largest brewer plans to attempt a takeover of giant SABMiller, which could see it control 30 per cent of global beer volume.
American behemoth Anheuser-Busch InBev (AB InBev) is gearing up for a bid on the South African-based brewer that could top US$100 billion.
SABMiller, which purchased Australia’s Foster’s Group in the last month of 2011, has been underperforming in recent years, largely due to its high exposure to developing markets in China, Central America and Africa.
The company‘s valuation has dipped to eighteen times forecast earnings.
AB InBev likely finds the inroads to emerging markets enticing, particularly given its own slowing growth and the potential for growth in those regions in coming years for big brewers.
“Beer consumption in developed markets like the U.S. has slowed in recent years and craft brewers, while still a small factor overall, have nonetheless been taking market share,” reports the Wall Street Journal of the issue.
AB InBev will be subject to the competition watchdog, and may be forced to shed assets to get the merger approved. This could yet prove beneficial for other acquisitive brewers.