ECON 101 Lecture Notes - Lecture 2: Beam Suntory, Anheuser-Busch Inbev, Chessboard

• School: U of M
• Department: Economics
• Course: ECON 101
• Professor: William James Adams

Document Summary

Sabmiller"s bid for heineken opens the door to possible beer industry mergers. When anheuser-busch inbev moved to take full control of the mexican beer maker modelo, it thought the deal would be a cinch. The biggest brewer in the world already controlled modelo with a 50 percent stake, and sealing its ownership would do litle to change the compeiive landscape. But united states anitrust regulators balked, fearing that the enlarged company would raise the price of popular brands like corona. Only ater a year of negoiaions and promises to complete painful divesitures did anheuser-busch inbev win approval for the billion deal last year. Now, as the global beer business braces for another round of potenial consolidaion, that episode casts a long shadow over the empire-building aspiraions of the remaining brewing behemoths. On sunday, heineken said it had rejected a takeover ofer from sabmiller, the second-largest beer company in the world.