Anheuser Busch Merges with Belgian InBev: There is Hope for American Beer!

Or maybe not.  Belgian InBev, maker of Stella Artois and Becks beer has been attempting to purchase Anheuser Busch since June.  Probably longer than that, but the announcement came in June when an offer to purchase the company at $65 per share was made.  Anheuser Busch did not want this merger and was looking at a myriad of cost cutting options, including selling off some of their popular theme parks like Sea World San Diego and Orlando, as well as measure that would offer early retirement to some employees while cutting benefits to others.

Today, it was reported that the anti-takeover measures were over and that Anheuser Busch, the largest brewer in the United States would be owned by a foreign company.  This merger will make the company the FOURTH LARGEST CONSUMER PRODUCT COMPANY IN THE WORLD.  That's pretty big.  And it's beer.  Wow.

Apparently, Anheuser Busch accepted the new offer of $70 per share and it appears that negotiations are still underway as to how the merger will actually take place.  This wasn't a friendly merger with both sides filing lawsuits against each other in the last month.  Shareholders and regulators will still have to make final approvals before they can move forward, but all signs point to this merger taking place.  There are rumours that top members of Anheuser Busch will sit on the Board of the merged company, but nothing is definite.  We've seen that before and the folks with seats, don't always keep those seats over time. 

Will Budweiser stay Budweiser?  Will Anheuser Busch become Anheuser Busch InBev?  Will production remain strong in the US or will Budweiser start being brewed in Europe?  These are the things that could change lives across America.  No one knows if the merger will result in layoffs and brewery closures.  The Anheuser Busch name is on theme parks and sports stadiums and for many Americans, Budweiser means beer.  I'm sure there are many people out there concerned about how their lives will be affected by this merger.  In the meantime, we'll have to watch and see what happens next.

On a personal note, I'm sort of hoping they improve the Budweiser flavor.