New York (HedgeCo.Net) – Anheuser-Busch has agreed to a $50 billion takeover bid by Brazilian-Belgium brewer InBev, in which will result in the largest beer company in the world.
The final $70 a share offer was $5 higher than the original bid in which Anheuser-Busch rejected. The company will now be called Anheuser-Busch InBev according to an unnamed source and will post annual sales of around $36 billion.
"This combination will create a stronger, more competitive global company with an unrivaled worldwide brand portfolio and distribution network, with great potential for growth all over the world," said the 48 year old Carlos Brito of InBev, who will serve as the head of the new company.
InBev, who produces Labatt Blue and Stella Artois, has been stuck in a nasty month-long battle with Anheuser-Busch after they proposed their own slate of board nominees and both companies filed suits against the other. Anheuser-Busch claimed that their original offer was not only illegal but wasn’t even probable thanks to insufficient funding. They also were clear to point out InBev’s Cuban brewery.
Brito will make St. Louis the North American headquarters and promised not to close any of Anheuser’s U.S. breweries.
Shares of both companies surged on Friday amidst negotiation rumors. Anheuser shares rose 8.6 percent while InBev shares climbed more than 7 percent.
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