InBev completes acquisition of Anheuser-Busch

InBev agreed to sell its Labatt USA business and associated licenses under stipulations set by the US Justice Department in order to close its $52 billion takeover of US brewer Anheuser-Busch. ┬á ÔÇ£Effective today, InBev has changed its name to Anheuser-Busch InBev,ÔÇØ InBev said in a statement. ┬á Stella Artois brewer InBev and Budweiser brewer Anheuser-Busch will merge to become the worldÔÇÖs largest brewer. While Budweiser is the most popular beer in the US and controls nearly half of the US market, InBev has a strong presence in Western European and Latin American markets, making the new firm potentially one of the leading consumer products firms in the world. ┬á The combined business will generate annual sales of $36.4 billion, and produce about 46 billion litres of beer per year. The deal will create $1.5 billion in annual savings but both firms say that there is little overlap between the two businesses, and job losses should be kept to a minimum. ┬á Several years ago, Inbev was formed by a huge merger of BrazilÔÇÖs AmBev and BelgiumÔÇÖs Interbrew. Some US politicians have expressed anger at the possibility of Anheuser-Busch being taken over by a foreign company, but Inbev has promised that none of Anheuser-BuschÔÇÖs US breweries will be closed, and that BudweiserÔÇÖs headquarters will stay in St. Louis, Missouri. ┬á The new company, Anheuser-Busch InBev, will be headquartered in Leuven, Belgium, and led by InBev CEO Carlos Brito. ┬á Brito said the joining has created ÔÇ£a stronger, more competitive global company with a leading international brand portfolio and distribution network, and great potential for growth all over the world.ÔÇØ ┬á The deal should also give Budweiser the ability to increase its growth in Europe, a market where the brand has been relatively weak.