Belgian brewer InBev said on June 11 it has proposed to buy Anheuser-Busch Cos. Inc. for $65 per share. The company sent the proposal to Anheuser-Busch's board of directors in a letter addressed to President and CEO August Busch IV.
The merger would create one of the world's five-largest consumer-products companies, according to InBev. Anheuser-Busch acknowledged receipt of the proposal and said its board of directors is evaluating the offer and that it will "pursue the course of action that is in the best interests of Anheuser-Busch's stockholders."
InBev says if a merger occurs it would retain Anheuser-Busch's current headquarters in St. Louis as the home base for its North American operations and that it would continue operating all of Anheuser-Busch's U.S. breweries.
The combined companies would generate annual revenues of $36.4 billion, according to InBev.
InBev CEO Carlos Brito views the merger as an opportunity for Anheuser-Busch to achieve greater global reach.
"We would position Budweiser as our global flagship brand, leveraging our international footprint to enhance the brand's image and exposure," wrote Brito in a letter to Busch. "We aleady have a winning track record of building your brands outside the United States."
Brito notes that the two companies have maintained a partnership for nearly 30 years in Canada that has resulted in Anheuser-Busch brands growing at a compounded annual growth rate of 7.25% in that country.
Anheuser-Busch already has made moves recently to introduce its products abroad. The company will begin selling Budweiser in Vietnam early this month.