BRAZIL: AmBev delays share merger
AmBev faces a delay over its stock merger
Plans by Anheuser-Busch InBev's Brazilian unit, AmBev, to merge its two classes of shares into a single stock have been delayed by around two months.
The division announced the move late last year in a bid to cut administrative costs and boost its liquidity. Shareholders approved the plan in July this year and trading of the single stock shares should have commenced last week.
However, in a filing on 29 August, AmBev said that trading of the shares would not commence until “on or about 14 November”. The delay, the brewer said, is due to the “process” of registering the new entity, Newbev, with the Brazilian Securities Commission.
In a note, analysts at JP Morgan said "the potential tax benefits of the merger may also be delayed and/or dividend announcements". However, the analysts still recommended the stock to investors as beer consumption in Brazil is expected to "rebound" in 2014.
- The category today - Scotch Whisky I
- Today's Market Trends - Scotch Whisky II
- Key Brands Performance - Scotch Whisky IV
- Tomorrow's Market Trends - Scotch Whisky III
- Category Innovations - Scotch Whisky VII
- Beam Suntory names CFO, makes structural changes
- Analysts clash over AB InBev SAB Brexit impact
- Diageo to accept US$1m South Korea fine
- Pernod switches Travel Retail Europe op's director
- AB InBev unveils Stella Artois three-packs
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Consumer and Market Insights: Wine Market in China