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Inbev Fair Offer

833 Words4 Pages

InBev has approached one of the most famous American brewery company, Budweiser, with an offer of $46 billion dollars for purchase. The company reached a decision after long negotiation process, but then the Belgian brewer and soft drinks giant InBev made an offer to acquire the U.S. parent company of Budweiser beer for $65 a share, or $46 billion dollars (This Bud May be for the Belgians; 2008). The St. Louis brewer reported on June 11, after the close of trading on the New York Stock Exchange, that it had received the offer (This Bud May be for the Belgians; 2008). The main question here is do you think that InBev made a fair offer for Budweiser? Yes, InBev made a fair offer to Budweiser. The reason for this is from the offer it was able to get a 24% increase over where shares were trading just before InBev's interest last month did not do so well. Shares of Anheuser rose 7% in the after-hours of trading (This Bud May be for the Belgians; 2008). It’s also a fair offer because InBev is one of the largest brewer in the world (This Bud May be for the Belgians; 2008). Some of …show more content…

From this decision one may think well did InBev get what they actually paid for. To answer that question InBev received for their money a deal, which is widely expected to gain approval. This would be the largest in the industry and the third-largest ever of a foreign takeover on a U.S. company. From this purchase the combined company would have about $36.4 billion in annual net sales and brew about a quarter of the world's beer (Anheuser Will Be Bought By Belgian InBev; 2008). The deal with Anheuser, InBev would be gaining a well American established beer company that would expand around the world, while having it’s brewery site in St. Louis be the head quarters for the North American brand. InBev will also be expanding their presence in the U.S. more from this purchase. They will be able to gain a new group of

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