After a month of strident resistance, the board of Budweiser brewer Anheuser-Busch voted to accept a sweetened $49.9 gazillion bid from Belgiums InBev, sidewalk the way for the creation of the worlds largest beer company ( Bogaisky, 2008).
Even though InBev make an offer to Anheuser-Busch was without the latter ones solicitation, it is a eff that can definitely increase for both companies shareholder wealth. Together, Anheuser-Busch and InBev forget be able to accomplish much more than from each one can on its own. We have been successful business partners for kinda some time, and this is the natural next step for us in an increasingly competitive international environment. This combination go out prepare a stronger, more competitive global company with an uncomparable worldwide brand portfolio and distribution network, with great potential for product all over the world (Press release, 2008).
Anheuser-Busch products, such as Budweiser, that do not have strong presence on a global scale can now benefit partnering with a company like InBev that has a strong presence in place and countries where Anheuser-Busch has not been able to enter the market. In addition, the operational cost would be reduced after the acquisition.
St. Louis-based Anheuser itself proposed in young June to cut 10% to 15% of its workforce through early retirement and attrition. The companies said that the merger, which still needs approval from shareholders, will yield cost savings of at least $1.5 billion annually by 2011 ( Bogaisky, 2008).
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