AB InBev Is Not Eyeing Developed Market Growth Through The SABMiller Acquisition

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Anheuser-Busch InBev

 

Anheuser-Busch InBev (NYSE:BUD) is looking to get regulatory approval for its mammoth $108 billion acquisition of SABMiller. What is clear is that the brewer is not looking to expand its operations in major developed markets through this merger. Why?

Growth is already strapped in Europe and North America due to already high penetration levels and overall slowdown in beer consumption in these regions. In addition, AB InBev has more than 40% market share in the U.S., and a considerable share in Europe, which will make it tough to get regulatory approval. Thus, the brewer has looked to dispose of SABMiller assets in these developed markets to appease regulators and ensure the closing of this deal by the second half of 2016.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Anheuser-Busch InBev

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