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InBev, based in Leuven, Belgium, is the second-largest brewer by volume after London'sSABMiller. Anheuser is the world's third-largest brewer by volume and the dominantU.S. beer maker.A-B has a very solid market in the U.S, and has become an American icon.InBev now operates in 32 countries, sells beer in 140 and is No. 1 or No. 2 in 20 keymarkets.The merger between A-B and InBev would produce a corporation with a marketcapitalizattion of more than 100 Billion dollars.
Screening Plan:
Potencial Targets:SABMiller Anheuser BuschDiageo plcAltria CorporationSan miguel corporationHeinenken N.VMolson Coors brewing companyDiageo plc - Diageo is the leading premium spirits company in the world by volumes, bynetsales and by operating profit. It is one of the few international beverage companiesthat spans the entire alcoholic drinks sector, offering beer, wine, and spirits. Even thoughDiageo owns beer brands like guiness and harp lager its primary areas of businessoperations is in distilled spirits like johnny walker scotch whisky, Jose cuervo tequila etc.Its presence in the beer industry is small. Diageo has also been acquring more vodka,Rum and baijiu( A traditional chinese liquor) brands. Diageo's major share of theoperations is in Europe where it gets 40% of its revenues. Diageo'smajor beer brands likeguiness stout and harp lager are direct competitors to Inbev's beer brands.SABMiller: SABMiller is the worlds largest brewer by volumes. SABMillers and Inbev'sarea of operations significantly overlap and any attempt by Inbev to take over SABMiller 
 
will come under significant regulators scrutiny. SABMillers revenues and volumes arecomparable to Inbev's.Heinenken N.V: Heinenken N.V is one of the biggest brewers in the world.Inbev's area of operations is Western Europe and latin America. Inbev has a very smallshare of the beer market in USA. SABMiller's area of operations.While InBev sells beer in more than 130 countries, it generates less than 1 percent of its beer volume in the U.S.A-B has about 50% of the US Beer market, Anheuser-Busch's U.S. sales have slowed inrecent years, with annual domestic shipments of Budweiser declining 17 percent from2004 to 2007, according to Beer Marketer's Insights. SABMiller Plc has the world's most beer sales by volume. SABMillers and Inbev's area of operations significantly overlapand any attempt by Inbev to take over SABMiller will come under significant regulatorsscrutiny. SABMillers revenues and volumes are comparable to Inbev's.Anheuser- Busch, the world's biggest brewer for five decades before being overtaken byInBev, has been selling the Belgian company's Beck's and other brews in the US for the past year.InBev's acquisition strategy, which relies on cutting costs, might clash with the culture of Anheuser-Busch, known for close relationships with distributors and expensivemarketing.Primary issues in finishing the deal:Opposition to the Deal: The deal may be opposed by the Busch family members familymembers identified in SEC documents are directors August A. Busch III, the former chairman and CEO, who owns 1.2 percent, and August A. Busch IV, the current CEO,who owns 0.40 percent. Busch family members who currently sit on the board andcontrol AB may not be ready to let go of the control of the companyInBev needs to negotiate with the berkshire hathway which holds about 4.99% stake inAnhueser-busch. Berkshire hathway and warren buffet may not be interested in an allcash deal. It may be more interested in acquiring stake in the resulting corporation.A-B is a American Icon and there may be resistance from the political quarters. . Fear of  job losses is very high around the breweries. The St louis based company is very old andit has a very well established managerial culture. Any sudden changes to the
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