Bud agrees to sale to InBev

[Zathras]

Bud has agreed to a price of about $70/share from Inbev. Morningstar - MarketWatch: Anheuser accepts $49.91 billion InBev offer
Has anyone seen info on if this is a cash or stock sale?
Could someone who has had one of their stocks 'bought out' share their experience with how long the process takes?

 

[clifp]

The last take over I was involved in was Bank of America's take over of Country wide.
The process from initial bid to finally getting B of A share was just under 6 months, which was super fast IMO.

The initial Inbev was all cash, so I'd expect the $70 bid to also be cash. My wild ass guess is that should be relatively fast since it is cash and no longer hostile. Still I would assume 6 months and wouldn't be surprised to see a year since it is mega merger and the taking over firm is in Europe.

 

[Zathras]

Thanks clifp, good points and sound reasoning.
A part of me is hoping it gets finalized before the recovery so I can get back in at sale prices. Should be interesting to see it unfold. I suspect some politicians are going to fight it.

 

[FinanceDude]

So, Bud is "Inbed" with Inbev??

 

[ziggy29]

Does that make Bud a Belgian beer?

 

[CitricAcid]

Does that make Bud a Belgian beer?

Corporation will be owned in Belgium, but, from what I have read, Budweiser will still be brewed in St. Louis and the N.A. HQ of InBev will be in St. Louis as well. The deal was primarily made to increase Beck's and Stella Artois' N.A. exposure and Bud's exposure overseas.

P.S. They may make a few "expense cuts" as well, but we shall see.

 

[harley]

The deal was primarily made to increase Beck's and Stella Artois' N.A. exposure and Bud's exposure overseas.

I'm not sure how that will work out. Beck's and Stella are already available pretty much everywhere, and as for Bud's exposure overseas...that sounds sort of like a chance to import Boone's Farm into France. (Do they even make Boone's Farm anymore? Am I dating myself?)

I'm not a huge fan of European attitudes all the time, but they do have educated beer palates (except the French). I can't see a hopless rice beer making inroads in Europe quickly enough to make it a good buy. Maybe in Asia, they tend to drink milder/blander beers, and don't automatically hate anything American.

Disclosure - I hate Bud, and almost all lite beers. I'm looking forward to being able to buy the Real Budweiser, made in Czechoslovakia (sp?)

Harley

 

[audreyh1]

I can imagine far worse things than a Belgian company taking over a beer manufacturer!

I still miss the Belgian Celis brewery in Austin TX. Amazing beer. Truly innovative brewer (which is typical of Belgian beer makers). They were doing great until Miller bought them and then shut them down in 2000. They even made a signature beer for Clint Eastwood. [FWIW - the Celis equipment and trademark was bought by Michigan Brewing in 2002, hired Pierre Celis (brewmaster from the original) and have revived the Celis brands - yay for them - maybe I'll get my hands on some again one day].

But I have to disclose with Harley that I hate Bud. I don't care for "yellow" (pilsner) style beers anyhow. And I still shudder whenever I go to a brew pub and here someone order "XXX light". Give me red, give me brown, give me black - anything but white or yellow beer.

Audrey

 

[Notmuchlonger]

In about a week Ill be taking a tour of Busch in St Louis. Wonder if I should bring my passport

 

[Marquette]

But I have to disclose with Harley that I hate Bud. I don't care for "yellow" (pilsner) style beers anyhow. And I still shudder whenever I go to a brew pub and here someone order "XXX light". Give me red, give me brown, give me black - anything but white or yellow beer.

Audrey

True story, I can't stand the taste of any alcohol. To me, there's very little difference in taste between a Miller Lite and a micro-brew red. Guiness has a bit more coffee flavor and a 25 yr old single malt scotch tastes like the rest but has more of a cough syrup flavor. I'm guessing this all is greatly contributing to FIRE.

 

[eridanus]

I still miss the Belgian Celis brewery in Austin TX. Amazing beer. Truly innovative brewer (which is typical of Belgian beer makers). They were doing great until Miller bought them and then shut them down in 2000. They even made a signature beer for Clint Eastwood. [FWIW - the Celis equipment and trademark was bought by Michigan Brewing in 2002, hired Pierre Celis (brewmaster from the original) and have revived the Celis brands - yay for them - maybe I'll get my hands on some again one day].

I was in a pub in Belgium when Celis was brewing and the owner knew about Celis Beer brewed in Austin. I guess it was one of those "look at what this local guy did in the States."

On the same trip, I also found some Stubb's BBQ sauce in a grocer in Paris. Go figure.

 

[FIREd]

LOL! Just a month ago executives and politicians were falling all over themselves defending BUD as a national icon that could never possibly be sold to some foreign country. I guess everything has a price...

 

[audreyh1]

I was in a pub in Belgium when Celis was brewing and the owner knew about Celis Beer brewed in Austin. I guess it was one of those "look at what this local guy did in the States."

On the same trip, I also found some Stubb's BBQ sauce in a grocer in Paris. Go figure.

LOL! Stubbs BBQ sauce on sale in Paris!!!

Celis chose Austin because the very high lime content of the water was similar to the water in their part of Belgium. Austin water has a very high pH - 10 to 11. Just an interesting note of trivia. It made vegetable growing challenging sometimes.

Anyway - we really enjoyed having them as a local brewery. And I got the meet the brewmaster a few times - would run into him at restaurants, etc.

Audrey

 

[CitricAcid]

pH of water being 10 or 11? That is almost laundry detergent-basic.

 

[aida2003]

I don't drink beer, but own BUD shares. I'm happy about the sale . I just hope it gets completed by YE. I had already sold two 'dogs' that would offset my gain on BUD.

 

[Khan]

I'm not sure how that will work out. Beck's and Stella are already available pretty much everywhere, and as for Bud's exposure overseas...that sounds sort of like a chance to import Boone's Farm into France. (Do they even make Boone's Farm anymore? Am I dating myself?)

Yes they do, and yes you are.

 

[TromboneAl]

Voor allen u, deze Bud's voor u!

Wanneer u Budweiser zegt, hebt u het allen gezegd.

De koning van Bieren.

And coming in the future:

Grote Smaak! Minder Vullend!

 

[ejman]

Maybe they'll teach them how to make beer that actually tastes like beer! Uhhhh asbestos suit where art thou?

 

[huskerblue]

And all of St Louis shudders. I wonder if we'll now have InBev Stadium featuring the St Louis Cardinals.

I heard in a radio piece {NPR or something} that InBev on average slashes advertising budgets of acquired campanies in half. Anyone have a few acres to adopt some out-of-work Clydesdales?!

 

[StJohnsWood]

I have been in the beer business for years. Knew it was only a matter of time before Bud would be bought out. Family ownership was very low. The couldn't block any takeover.

As for Bud products I think they are the worse of the Big 3 in the US. But I try desperately not to be a beer snob (Actual term used in the business). Their Amber's not bad but Bud Light is my third choice of the three. Remember though every beer has a place and don't fall for the marketing of really bad imports (Corona).

 

[CitricAcid]

And all of St Louis shudders. I wonder if we'll now have InBev Stadium featuring the St Louis Cardinals.

I heard in a radio piece {NPR or something} that InBev on average slashes advertising budgets of acquired campanies in half. Anyone have a few acres to adopt some out-of-work Clydesdales?!

They're having the MLB all-star game there next year too ! It may be a very bitter place after getting a new stadium and relying on the company for so long and then all of a sudden they get bought out, but oh well.

As for Bud products I think they are the worse of the Big 3 in the US. But I try desperately not to be a beer snob (Actual term used in the business). Their Amber's not bad but Bud Light is my third choice of the three. Remember though every beer has a place and don't fall for the marketing of really bad imports (Corona).

Heineken ring a bell?

 

[harley]

Remember though every beer has a place and don't fall for the marketing of really bad imports (Corona).

Heineken ring a bell?

I'd always disliked Heineken and had a theory that the Dutch were conspiring to send us all their skunked beer. And when I drank some in the Nederlands and it tasted great, I was sure of it. I can just see them..."oh, these beers were left in the 85 degree sun for three weeks, what should we do. I know! Let's send it to the Americans. It's still better than Budweiser!"

It would be interesting to see what happens to Bud if InBev does cut the advertising budget. I've often thought Bud's advertising is what makes it so big. I don't like the beer, but some of the advertising is genius.

Harley

 

[CitricAcid]

I always heard that Stella Artois, Heineken and Guinness always taste better across the pond, but perhaps it is just people enjoying the time in a foreign country drinking a foreign beer rather than drinking one at home.

 

[FinanceDude]

Duvel tastes good no matter WHERE it's brewed..........

 

[Milton]

"American owned. Born Here. Brewed Here"

Does that make Bud a Belgian beer?

Yes, it does.

So much for Anheuser-Busch's jingoistic advertising [see generally Minority Report: Test Marketing Xenophobia; How Americans Can Buy American; Anheuser-Busch Takes on Molson Coors, SABMiller - Science - redOrbit; http://www.nytimes.com/2005/07/11/business/media/11adcol.html?pagewanted=print]. What hypocrisy.