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Discussion in 'Beer News & Releases' started by Todd, Jul 7, 2019.
You can't go wrong betting on beer.
$100 billion debt? They’re almost as bad as our government.
Much of that debt was to finance the SABMiller acquisition in 2016. Standard M&A stuff (strategic debt), nothing to be alarmed about in its own right. "The Brazilians" who run InBev by all accounts have trimmed a lot of the fat since they bought Anheuser-Busch.
100 $billion debt, that gotta be 5-10 bill annual interest at least. Good god that would solve some problems domestic and foreign - oh yeah it's beer, it is solving problems.
I read about this earlier this week from another source and from what I read the initial offering will be sold to large private sources and whatever is left may be sold to the public
Anheuser-Busch InBev calls off Asia unit IPO
And Barron's reported that AB InBev shares were down today.
Well of you can't get 10 billion get 16 billion.
Meh, 5.2x leverage isn't terrible. Their S&P credit rating is A- which is one of the highest investor grades, although they are on credit watch.
More like $4.5B for the last twelve months through March 2019.
Interesting. Asahi is buying up western assets left and right it seems. From what I understand the Australian market is a market in decline much like most of the west and I imagine that CUB wasn't what made ABInbev want to buy SABMiller in the first place, they were more likely after their position in emerging markets. But Asahi goes out and gets these brewing companies in mature markets, that's quite the different way of going about things. Maybe they still have faith in being able to leverage strong brands for marketshare gains in these mature yet also more profitable markets.
Then again, as they themselves surely want to join the race for premiumization in the emerging markets I guess it doesn't hurt to have a stable of large brands of their own to use for this purpose.
From the above:
This doesn't sound right at all - though, granted, can't say I've followed the Australian industry closely (not helped by many name changes, buy-outs and spinoffs). By the 1980s CUB and Foster's were both owned by Elders IXL. Elders went on to buy Courage in the UK and Carling in Canada but eventually left the brewing industry. At one point, Asahi even owned a large but minority portion of Elders/Fosters.
Also, by 2011, SABMiller was based in London, having left South Africa in the late 1990s, a few years before buying Miller, IIRC.
Yeah, most estimates put Asahi at #7 worldwide (post-SABMiller/AB merger and the subsequent sale of the central European and other breweries to Asahi) but it doesn't look like the CUB barrelage (hectoliterage? ) will bump them up enough to pass #6 Tsingtao.