The Wall Street Journal reported today that Anheuser-Busch has finally agreed to be purchased for $70 per share by Belgo-Brazilian brewer InBev. The merger will form the largest brewer in the world and the fourth largest consumer product company in the world.
Tracing its roots back to Eberhard Anheuser and Adolphus Busch (Anheuser's son-in-law), the brewing company has been in existence since the 1860's. It's seen many tests, including Prohibition when it sold root beer and ice cream, among other products. When Prohibition ended, it's said that the company sent a Clydesdale-powered wagon straight up to 1600 Pennsylvania Avenue with a load of beer for the President.
It currently produces about half the beer produced in the U.S., and approximately 6,000 people are employed in St Louis by Anheuser-Busch. Of course, as with any merger, nothing is to change at the company due to the merger; however, many employees should be rightfully concerned about their futures with the company in my humble opinion.
Although the company has agreed to the merger, shareholders and regulators must still approve. Reportedly, InBev brews beer in Cuba, and it is thought that fact may be a hang-up for American regulators in approving the deal.
While in college, I actually spoke with one of the master brewers at Anheuser about pursuing fermentation sciences in graduate school. (No, seriously. What else are you supposed to do with a dual major in biology and finance?) I learned that a doctorate in fermentation sciences was only available -- at least at the time -- at UC Davis and The University of Munich in Germany. Who would have thought at that point, I'd wind up in banking!
In any event, another American icon appears to be fading... that is if the shareholders and regulators approve...
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This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, “Riddle Me This”.
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