Merger to create world no.1 beer company

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Merger to create world no.1 beer company

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The United States’ number one brewer Anheuser-Busch has accepted a 32 billion euro take-over bid by Belgium’s InBev, paving the way for the world’s largest beer company. InBev, which makes Stella Artois and Beck’s, agreed to pay 44 euros per share.

The new group, which is expected to gain shareholders’ approval, will brew about a quarter of the world’s beer, and could yield cost savings of just under a billion euros a year.

The deal brings an end to a month-long take-over saga that was becoming increasingly hostile. The prospect of the iconic American brewer falling into foreign hands caused an outcry among politicians and the public in the United States.

InBev’s mostly Brazilian management team, which has a reputation for ruthless cost-cutting, has pledged to keep the headquarters of the North American division in St. Louis, Missouri. However, no assurances have been made as to job cuts.