06/11/2008: InBev (ENXTBR:ABI) / Anheuser-Busch Companies Inc.

2008 Deals You Should Know – Inbev / Anheuser-Busch

Anheuser-Busch agreed to sell itself to Belgian brewer InBev for about $52 billion, putting control of the nation’s largest beer maker and a fixture of American culture into a European rival’s hands.

The all-cash deal, for $70 a share, created the world’s largest brewer, uniting the maker of Budweiser and Michelob with the producer of Stella Artois, Bass and Brahma. Together, the two companies would have sales of more than $36 billion a year, surpassing the current No. 1 brewer, SABMiller of London.

The deal marks a sharp reversal for Anheuser, which was founded and always based in St. Louis. When InBev announced its initial $46.3 billion offer, Anheuser mounted a fierce defense. It drew upon its heritage and its history as a major benefactor of its hometown, and argued that it could increase its profits alone.

But Mr. Busch, the company’s chief executive whose family has controlled Anheuser for more than a century, was facing pressure to consider a deal. Anheuser’s stock had remained mostly stagnant in recent years, but has climbed since InBev made its offer public last month.

Anheuser ultimately approached InBev, seeking the company’s best and final offer. InBev responded by raising its bid to $70 from $65 per share.

Investment banks involved:

BNP Paribas, Centerview Partners, Citigroup, Deutsche Bank, Goldman Sachs, JP Morgan, Lazard, Merrill Lynch, Moelis, UBS