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Beerhemoth To Be Birthed October 10

AB InBev, SABMiller Merger Set to Close Oct. 10

The multibillion-dollar merger of Anheuser-Busch InBev and SABMiller has cleared all international regulatory hurdles and is set to finalize on Oct. 10, 2016. The estimated US$105 billion deal will create the world’s largest beverage company with combined revenues of approximately $73.5 billion globally.

The deal between AB InBev (the world’s biggest beer producer) and SABMiller (the world’s second largest beer producer) will create the world’s largest beer company with nearly 30% market share, approximately $66 billion in combined annual revenues and nearly $12 billion in net income. One in three beers sold globally will be owned by the beerhemoth.

Upon completion of the deal, the new beerhemoth – which has yet to be named – will remain headquartered in Leuven, Belgium, and its Global Functional Management office will operate out of its current New York location. To maximize growth opportunities and build on the strengths of both companies in their respective markets, the combined group will be organized into nine geographical zones.

  1. North America (headquartered in St. Louis): United States and Canada
  2. Middle Americas (headquartered in Mexico City): Mexico, El Salvador and Honduras
  3. Latin America North (headquartered in São Paulo): Brazil, the Dominican Republic, Guatemala, Panama, St. Vincent, Cuba, Puerto Rico, Barbados, Dominica and the Caribbean
  4. Latin America South (headquartered in Buenos Aires): Argentina, Uruguay, Chile, Paraguay and Bolivia
  5. Latin America COPEC (headquartered in Bogotá): Colombia, Peru and Ecuador
  6. Europe (headquartered in Leuven): UK, Ireland, France, Italy, Spain, Germany, Belgium, Luxembourg, the Netherlands, Switzerland, Austria, Ukraine, Russia and Export Europe and Middle East (EEME)
  7. Asia Pacific North (headquartered in Shanghai): China, South Korea and Japan
  8. Asia Pacific South (headquartered in Melbourne): Australia, New Zealand, India, Vietnam and other South and Southeast Asian countries
  9. Africa (headquartered in Johannesburg): South Africa, Botswana, Swaziland, Mozambique, Malawi, Namibia, Zambia, Lesotho, Uganda, Ethiopia, African Islands, Tanzania, South Sudan, Kenya, Nigeria and Ghana

Once the headquarters are established in all the geographical zones, existing SABMiller hubs in Miami, Hong Kong and Beijing will be phased out quickly. The future of the SABMiller Europe hub is to be decided in the process of divestment of SABMiller’s Central and Eastern European businesses.

The Executive Board of Management of the new beerhemoth will be composed of 20 zone presidents and functional chiefs, 19 of which are from AB InBev and one from SABMiller. They will report to AB InBev’s CEO Carlos Brito.

 

Source Website: Natural Product Insider