What Its Craft Beer Alliance Acquisition Means for Anheuser-Busch InBev
It's been a busy few months for Anheuser-Busch InBev (NYSE: BUD). The company just completed the IPO of its Asian unit, raising $5 billion as it continues to look for ways to pay down debt following its megamerger with SAB Miller. Then AB InBev stock plunged 11% following its third-quarter earnings report, surrendering nearly $20 billion in market value after the company revealed that beer shipments had fallen in major markets including the U.S., China, and Brazil, and management trimmed its guidance for the year.
Now, the Budweiser-owner is making another major move, taking over Craft Brew Alliance (NASDAQ: BREW), with its portfolio of brands like Kona, RedHook, and Widmer.
The two companies had already been partners, and AB InBev owned 31.2% of the craft beer distributor, but the companies announced Tuesday morning that AB InBev would buy out the remainder of Craft Brew Alliance for $16.50 per share, more than double Monday's closing price, but less than the acquisition price stipulated in a previous agreement. However, the stock was trading above $16.50 earlier this year, so it's not as big of a win for CBA investors as it might seem.
Source Fool.com
