Share |

Busch family accept InBev takeover offer

Anheuser-Busch has agreed to the latest takeover bid from Belgium-based InBev, ending the month-long standoff between the two companies.

The sweetened deal of $70 per share, is up $5 from the original unsolicited bid and puts a 27% premium on Anheuser's October 2002 record-high stock price. The total value of the deal is $52 billion.

The combined company, which will be called Anheuser-Busch InBev, will create the global leader in the beer industry and one of the world's top five consumer products companies.

Subject to US regulatory approval, the deal will be the largest in the drinks industry and the third-biggest foreign takeover of a US company.

InBev chief executive Carlos Brito will become CEO of the new company. The board of directors will be comprised of the existing directors of the InBev board and Anheuser-Busch president and CEO August Busch IV. One other current or former director from the Anheuser-Busch Board will also get a seat.

After a month of fierce fighting, which included an attempt by InBev to remove the entire Anheuser-Busch board, the two companies have said that the deal was amicable.

Last month the Busch family revealed it was still split over whether it would be in favour of a takeover. As early as 29 May, current CEO August Busch IV said that while some family members were open to holding talks with InBev, others were firmly against the idea.

Busch IV, who became the fifth member of his family to run the business in December 2006, said at the time he was firmly against any possible deal, where as Adolphus Busch IV- uncle of CEO August Busch IV - was a public supporter of the deal.

Read Joachim Schwass: To sell or not to sell?

Click here >>