BRAZIL: A-B and InBev "begin merger talks"

By just-drinks.com editorial team | 15 February 2007

Anheuser-Busch and InBev are in preliminary merger talks, according to a Brazilian newspaper report.

Valor Economico claimed today (15 February) that the two global brewers have begun talks about a possible merger.

The paper cited a source close to three Brazilians on InBev's board. Valor Economico also cited an unnamed investment banker as saying that a merger between the two was likely to happen in the future.

When contacted by just-drinks today, a spokesperson at InBev refused to comment on the reports: "It is not our policy to comment on market speculation," the spokesperson said.

Late last year, the two brewers announced that A-B would become the exclusive importer of a number of InBev's premium European beers in the US. From 1 February, A-B began importing, selling, promoting and distributing Stella Artois, Beck's, Bass Pale Ale, Hoegaarden, Leffe and other select InBev brands in the country.

The move stirred speculation that the two companies may consider a merger in the future, with a source close to one of the brewers telling just-drinks at the time that: "The overlap of Anheuser-Busch with InBev is very small. Both have a much greater overlap with SABMiller, but between them, it could be possible (for a merger) to be successful."

Sectors: Beer & cider

Companies: InBev, Anheuser-Busch, SABMiller