AB InBev Will Report Its Q2 Results As SABMiller Pauses Integration Activity
Anheuser-Busch InBev (NYSE:BUD) is scheduled to announce its Q2 and half-yearly results on July 29, and although all eyes and ears will be on the update on the SABMiller acquisition, it will be interesting to see how the world’s largest brewer has been faring in crucial markets such as the U.S., Brazil, Mexico, and China.
The third largest acquisition in history beckons regulatory approval, and AB InBev has secured that in Australia, Europe, South Africa, and now the U.S. AB InBev is now awaiting China’s regulatory approval. The coming together of two of the biggest names in beer will create a behemoth that will account for ~28% of the global beer market. The deal, however, has met with a pause, with SABMiller taking time to consult with its shareholders over whether the new revised offer by AB InBev is acceptable. The value of the offer has fallen, since the pound sterling has taken a hit against the U.S. dollar and the euro. The pound sterling is down ~10% against the euro and ~12% against the dollar since right before the announcement of the Brexit vote on June 23. AB InBev lifted its cash offer to £45 a share, from £44 a share, to appease shareholders of SABMiller, which has halted, for now, integration with AB InBev, and is assessing whether the shareholders want to go ahead with the new offer.
- What’s Next For Anheuser-Busch InBev (BUD) Stock After A 7% Fall This Year Despite Q4 Earnings Beat?
- Does Anheuser-Busch InBev Stock Have More Room For Growth?
- What’s Next For Anheuser-Busch InBev Stock After A 17% Rise In A Month?
- What’s Happening With Anheuser-Busch InBev Stock?
- Should You Buy, Sell, Or Hold Anheuser-Busch InBev Stock At $55?
- What’s Next For Anheuser-Busch InBev Stock?
AB InBev has looked to ensure the closing of this deal by the second half of 2016, and has been working with SABMiller on integrating technology, finance, procurement, and certain supply-chain functions. The pause doesn’t necessarily mean that the deal might not come through or that SABMiller will oppose the new offer, but the uncertainty that has been brought on by the sudden fluctuation in the pound, and the events following that, have sent AB InBev’s ADR’s down 3.8% just before the announcement of the half-yearly results.
Have more questions on Anheuser-Busch InBev? See the links below.
- Ab InBev: SABMiller Combination Could Make U.S. Business Weaker
- How Can AB InBev’s Asia-Pacific Beer Segment Grow In The Next Five Years?
- How Can AB InBev’s Mexico Beer Segment Grow In The Next Five Years?
- How Can AB InBev’s South America Beer Segment Grow In The Next Five Years?
- How Can AB InBev’s North America Beer Segment Grow In The Next Five Years?
- Where Will AB InBev’s Revenue And EBITDA Growth Come From Over The Next Three Years?
- What Is Anheuser-Busch InBev’s Revenue And EBITDA Breakdown?
- How Important Is South America For AB InBev?
- How Has AB InBev’s Revenue And EBITDA Composition Changed Over 2012-2016E?
- By What Percentage Have AB InBev’s Revenues And EBITDA Grown Over The Last Five Years?
- What’s AB InBev’s Fundamental Value Based On Expected 2016 Results?
- Is Asia Pacific Becoming A Significant Segment For AB InBev?
- Why Asia Pacific Revenue Is Estimated To Grow By 3x The Net Sales For AB InBev Through 2020
Notes: