Posted on June 13, 2008 at 3:45 PM
Filed under: Acquisitions | Growth Strategy
Tagged: Anheuser-Busch , China , consolidation , distribution , InBev , m&a , Tsingtao

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A combination of InBev SA and Anheuser-Busch Cos. would give the new company a powerful position in China's beer market and could prompt further consolidation there.

InBev is already involved with a number of breweries in China and in recent years has bought such properties as  Fujian Sedrin Brewery Co. Ltd. and Hunan Debier Brewery. Anheuser-Busch, meanwhile, has a 27% stake in Tsingtao Brewery Co. Ltd. as well as ownership of the Harbin Brewery Group Ltd.'s 13 breweries. Budweiser is the No. 1 super-premium beer in China.

Budweiser also holds many stakes in and distribution deals with companies across Asia. In fact, Anheuser-Busch Cos. announced a distribution deal in Vietnam a few days ago. InBev could make use of those agreements to gain a further foothold in the marketplace. It's possible that InBev could take these distribution deals to the next step and eventually acquire the companies. Distribution agreements often precede acquisitions, according to Alan Thomas, a senior manager at Deloitte Consulting LLP.
- Maria Woehr
 

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