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06.17.2008 9:37 am

SABMiller may be takeover target, too

St. Louis Post-Dispatch

Anheuser-Busch  isn’t the only big brewer that’s a takeover target at the moment, Bloomberg reports today. It cites an analyst’s report that says SABMiller may be bought and split up within three years.

The analyst is Gerard Rijk of ING Groep. Bloomberg said he is predicting a “last phase in global beer consolidation”:

SABMiller is probably vulnerable to a bid approach in coming years, since it has no controlling family or foundation to repel a bidder, as is the case with Heineken NV and Carlsberg A/S, the analyst said. SAB also “lacks synergies” between its different regions and its current “haste” to roll out premium brands is “probably too late,” Rijk said.

“We assume that in three years’ time InBev/Anheuser-Busch, Heineken and Carlsberg will break up SABMiller,” Rijk wrote.

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7 comments

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They have been a “target” for takeover for years, yet no one has done it yet. It makes me wonder a little bit what might me scaring off potential suitors from grabbing them now, especially given the dollar’s weakness. This, of course, assumes that there is something scaring off potential suitors. It may just be that A-B is the pick of the litter, and Miller will go as a consolation prize down the road…

— Tim
11:24 am June 17th, 2008

Interestingly, SABMiller was the only big beer company to have a good, in fact great, Q1 08. InBev and AB did not.

Lastly, SABMiller doesn’t care about the dollar’s weakness, being that SABMiller is based in London.

— sdhixson
11:28 am June 17th, 2008

They care because Americans are still paying American dollars to drink the beer over here, and they have to pay their suppliers in American dollars, which are feeling the pinch from gas like everyone else. You can bet they care a great deal…

— Tim
2:13 pm June 17th, 2008

The dollar’s weakness would make American companies like AB more attractive. SABMiller is based in London, England.

— mike
6:09 pm June 17th, 2008

Where they are based is but one aspect. They are a target for takeover for many reasons, some of which are mentioned above in the article.

— Tim
12:56 pm June 18th, 2008

SABMiller

South African Brewers (SAB)Miller…based in London.. this is getting too confusing. Companies need to just stay where they are in order to ensure the consumer of being able to locate their brand indentity.

— Joe
11:29 am June 19th, 2008

SAB does care about the us dollar - they report financials in us dollars.

possible if AB deal doesn’t go through for what ever reason- Inbev will acquire SAB - loads of debt, dilute eps — but who cares- stiching trust calls the shots.. then where does this leave bud in the grand scheme of things??? got no friends in mexico - modelo- got strained relationship with inbev in canada. left with the slow mature uS market where sab/coors has just gotten stronger. neither heineken nor carlsberg can acquire bud, at least not for a few years till they pay down debt from recent deals.

so inbev/sab can wait a few more years and then put bud out of its misery. sell the us coors/sab jv back to molson family .

— pr
4:34 pm June 19th, 2008