US: Anheuser-Busch InBev Modelo delay to hit FY estimates - analyst
It now appears unlikely that Anheuser-Busch InBev will close its purchase of Grupo Modelo by the end of March
With Constellation Brands applying late last week to be included in the US Department of Justice's legal case against A-B InBev's proposal, the row is now expected to run beyond A-B InBev's intended completion date. In announcing its intention to buy the other 50% of Modelo, in June, the brewer said it hoped to complete the deal in the first quarter of this year.
In a note to clients today (11 February), however, Ian Shackleton at Nomura flagged the unlikelihood of that deadline being hit.
“There is significant risk of slippage on the deal over several quarters, which is set to lead to lower FY13 consensus estimates,” said Shackleton.
A-B InBev would appear to have “misread the regulatory climate for US beer”, Shackleton added, as he drew comparisons to the brewer's attempts to consolidate two of the major UK brewers, Bass and Whitbread, in 2000.
“The Office of Fair Trading (in the UK) ruled that it was not able to keep both businesses and (A-B InBev) ended up selling most of the Bass business (Carling) to Molson Coors,” Shackleton noted. “It was clear that the company had misread the regulatory position in the UK.”
A-B InBev followed Constellation's announcement on Friday with a statement backing its application.
USA Beer Market Background Briefing
Canadean’s, USA Beer Market Background Briefingprovides detailed analysis on the beer market background in USA . The qualitative data in the report analyses the dynamics in USA , providing marketers w...read more
Anheuser-Busch InBev (A-B InBev) is facing challenges in the mature US beer category by focusing on premium and craft beer. As the US Justice Department precluded A-B InBev from controlling the lucrat...
Alcoholic Drinks in Mexico industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2007-11, and forecast to 2016). Th...
This "value set" report combines Beer in the U.S., Imported Beer and Specialty Beer and Microbrewery Markets to create the most exhaustive study of the U.S. beer market available. An $18,000+ value th...
- Analysis - Remy's Cognac "dead-cat bounce"
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Heineken to stay "active player" in beer M&A - CFO
- Focus - Pernod Ricard's Q1 sales by brand
- Time for Heineken to make a European break
- Moët Hennessy unveils first Travel Retail outlet
- United Spirits sees Q1 net loss
- Whisky downturn slows Diageo's Scotch spend
- Beam Suntory, Edrington part ways in Travel Retail
- Pernod Ricard sees sales lift in Q1