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Abstract

This structured assignment is to accompany the case ''309-021-1''. The abstract of the case is as follows: The race was on for an unassailable lead in the global beer industry as Belgian-Brazilian InBev made an unsolicited takeover bid for the American Anheuser-Busch. With the fear of losing its 150 years of independence, the Busch family initially rebuffed the offer and tried all means to scuttle the deal. After a month long battle during June-July 2008, with contentious wrangling amid lawsuits and securities and exchange commission filings, InBev sweetened the offer by increasing the bid from $65 per share to $70 per share. Holding less than a 4% controlling stake in the company and receiving diverse opinions from the family about the deal, Anheuser-Busch had little or no chance of avoiding the deal. Finally on 12 July 2008, Budweiser was ready to wear a foreign crown. Could anything reflect the American loss of economic supremacy more visibly than for its iconic beer to fall into foreign hands? Though the deal would create the world''s leading beer giant ahead of South African Breweries Miller, doubts loom large regarding realising the anticipated synergies, amid diverse cultures and other complexities. Furthermore, will Budweiser give InBev a global competitive edge? The case can be used to: (1) examine the growing competition in the beer industry and conduct competitive analysis on major players; (2) discuss the (changing) critical success factors of the global beer industry; (3) identify the factors that are driving consolidation and globalisation in the global beer industry; (4) examine the desirability and viability of InBev''s hostile takeover bid for Anheuser-Busch; and (5) analyse the problems in integrating corporate and national cultures, particularly in a cross-border acquisition like InBev and Anheuser-Busch.
Location:
Industry:
Other setting(s):
2008

About

Abstract

This structured assignment is to accompany the case ''309-021-1''. The abstract of the case is as follows: The race was on for an unassailable lead in the global beer industry as Belgian-Brazilian InBev made an unsolicited takeover bid for the American Anheuser-Busch. With the fear of losing its 150 years of independence, the Busch family initially rebuffed the offer and tried all means to scuttle the deal. After a month long battle during June-July 2008, with contentious wrangling amid lawsuits and securities and exchange commission filings, InBev sweetened the offer by increasing the bid from $65 per share to $70 per share. Holding less than a 4% controlling stake in the company and receiving diverse opinions from the family about the deal, Anheuser-Busch had little or no chance of avoiding the deal. Finally on 12 July 2008, Budweiser was ready to wear a foreign crown. Could anything reflect the American loss of economic supremacy more visibly than for its iconic beer to fall into foreign hands? Though the deal would create the world''s leading beer giant ahead of South African Breweries Miller, doubts loom large regarding realising the anticipated synergies, amid diverse cultures and other complexities. Furthermore, will Budweiser give InBev a global competitive edge? The case can be used to: (1) examine the growing competition in the beer industry and conduct competitive analysis on major players; (2) discuss the (changing) critical success factors of the global beer industry; (3) identify the factors that are driving consolidation and globalisation in the global beer industry; (4) examine the desirability and viability of InBev''s hostile takeover bid for Anheuser-Busch; and (5) analyse the problems in integrating corporate and national cultures, particularly in a cross-border acquisition like InBev and Anheuser-Busch.

Settings

Location:
Industry:
Other setting(s):
2008

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