Belgian-Brazilian merger creates biggest brewery
3 March 2004
BRUSSELS – Belgian brewing giant Interbrew and its Brazilian counterpart AmBev on Tuesday announced they would merge their operations to create the world’s largest beer producer.
The new company will be called InterbrewAmBev and will have a global market share of 14 percent, making it the world’s biggest single brewer.
The deal gives Interbrew access to the all-important South American market, one of the few areas in the developed world where beer sales are rising at present.
AmBev will in turn benefit from teaming up with a partner that is a market leader in much of the rest of the world.
The new firm will have a combined revenue of around EUR 9.5 billion and it also hopes to generate around EUR 280 million of annual synergies through a combination of cost-cutting exercises including technical and procurement savings and cross licensing on its existing brands.
The firm will aim to sell three brands of beer worldwide – Stella Artois, Becks and Brahma – and support a raft of national beverages in the countries it operates in.
“The combination preserves the best of both companies while enhancing our profitability and prospects,” said Interbrew Chief Executive Officer John Brock.
“For Interbrew it also represents an opportunity to enter some of the fastest growing beer markets in the world,” he added.
AmBev Chairman Marcel Hermann was equally upbeat.
“This agreement offers AmBev a unique opportunity to combine with Interbrew and establish a truly global powerhouse, with strong positions in the best markets,” he said.
[Copyright Expatica News 2004]
Subject: Belgian news