Anheuser-Busch InBev to sell share in Chinese brewer
(Reported by Tim Bryant)
Anheuser-Busch InBev of Belgium said today it’s selling most of its share of Chinese brewer Tsingtao to a Japanese brewer for $667 million to help pay off the huge debt the company took on to buy Anheuser-Busch last year.
Buying A-B InBev’s 19.9 percent stake in Tsingtao is a major Japanese brewer, Asahi. A-B InBev said it will keep a 7 percent stake in Tsingtao. The deal would make Asahi the second-largest shareholder in Tsingtao with a 31 percent stake, behind only Tsingtao Brewery Group.
InBev’s $52 billion purchase last year of St. Louis-based Anheuser-Busch resulted in the world’s largest beer company. But InBev had to borrow $45 billion to pull off the deal and is now raising cash to help pay that debt.
AB InBev Chief Executive Carlos Brito said in a statement that the company remains committed to doing business in China, the world’s largest beer market.
“With strong local brands such as Harbin and Sedrin and global brands such as Budweiser, we are well positioned to benefit from the significant potential in this important market,” he said.
The company is doing what it can to raise more capital from selling new shares and bonds. AB InBev said Thursday that it was issuing $2.45 billion in euro and British pound bonds.
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667 million, a drop in the bucket to the 45 BILLION OWED.
Brito knows the Chinese can’t be intimidated, so his “management style” would be ineffective in dealing with Tsingtao. Better to take the money, declare victory, and retreat in an orderly manner with limited casualties.
Better selling Chinese brewery then a US brewery or laying another 1000 off.
This makes sense, not only do they obviously need the money, it also fits in their plans to turn Budweiser into a global brand. This strategy won’t work in Europe where Budweiser has a horrible reputation, but in countries like China and India Budweiser could become very big, which reduces the need for owning a Chinese brewery.
Anheuser-Busch InBev (AB-IB) will continue to sell off anything possible to keep their house of cards from tumbling down. AB-IB has issued new stock (180% increase), $2.5B in bonds, and are selling breweries, theme parks, and anything else that is not bolted down. Every employee perk that used to be free is now available for a cost to employees and retirees. Most current and former A-B employees believe that the retiree medical will be dropped within the next 2-3 years. All current and former A-B employees are praying that the Brazillians do not figure out a way to get their hands on the retirement fund. Regardless of the initial assurances, AB-IB will be forced to close at least 1 or 2 U.S. breweries within the next year to cut sufficient costs to avoid bankruptcy. Anyone want to buy an exotic animal? Those will probably be available soon from the theme parks and Grants Farm! I hope the Busch family and the old A-B Board of Directors all feel the pain and suffering of their former employees while they are out spending their 30 pieces of silver.