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FB Roundup: AB InBev/SAB Miller, Chow Tai Fook, and Padnos

AB InBev launches €71bn ‘mega-brewer’ offer; Chow Tai Fook Jewellery profit warning; Padnos transitions to fourth generation

AB InBev launches €71bn offer for SABMiller
Family-controlled brewer AB InBev, which produces brands such as Stella Artois, Budweiser and Beck's, has formally proposed a merger with the world’s number two brewer SABMiller - whose controlling shareholders include the Santa Domingo family from Columbia.
A quarter of AB InBev is controlled by three families. A trio of Belgium families, the de Spoelberghs, Van Dammes and de Meviuss, sold their family brewing businesses in return for large equity stakes, totally 28.6%, in AB Inbev - the world’s largest brewer. The Brazilian trio of Carlos Alberto Sicupira, Jorge Paulo Lemann and Marcel Telles control another 22.7% of ABInbev through their private investment office 3G.
The proposed merger, which is subject to approval by competition regulators in the US and Europe, would create the world’s largest brewer with an estimated market capitalisation of $275 billion.

Chow Tai Fook Jewellery shares drop after profit warning
Third generation Chow Tai Fook Jewellery has seen share prices drop further following a profit warning signalling a 40-50% year-on-year net profit drop.
The Hong Kong-based retailer blamed the drop on weak consumer sentiment in Hong Kong and Macau, and a reduced gross profit margin.
The jewellery chain, with 2,290 retail stores, has seen its share price slump 44% since the beginning of 2015. It reported annual revenues of HK64.3 billion ($8.3 billion) in the year to 31 March 2015.
It is owned by Hong Kong conglomerate Chow Tai Fook Enterprises, controlled by the Cheng Family, which is the major shareholder in a number of listed companies.

US recycler transitions to non-family executives to bridge generation gap
Third-generation chief executive Jeff Padnos and three family members are transitioning leadership of their eponymous company to a mixture of family and non-family executives to operate their 110-year-old recycling business.
Moving key leadership roles to six non-family and three family executives, Jonathon, Josh and Sam Padnos, is intended to create a smooth transition to its fourth generation.
Shelley Padnos, PADNOS’s executive vice president commented: “We are doing something many family-owned businesses struggle to do – execute a planned and thoughtful transition to a fourth generation. And if we are successful, we will be proud to have followed in the footsteps of several of our customers.”
Padnos does not publicly disclose annual revenues, although it reported revenue of $300 million in 2007. It has 500 employees in 20 locations in Michigan and throughout the United States.

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