Ale-ing Empire?

Published January 7, 2016 2:28pm ET



Just when you thought there couldn’t possibly be any more breweries for AB InBev to acquire, the beer giant is now going after rival SABMiller. So the company that already owns Budweiser, Bud Light, Stella Artois, and Corona is now gunning for Miller, Coors, Peroni, and Blue Moon, to name a few. Needless to say, the move has gotten the attention of the Senate antitrust subcommittee. But is the merger simply a power play or a matter of survival?

The concern from members of Congress (especially those from states with a strong craft-brewing presence) is understandable. AB InBev currently sells 16 brands in 25 countries, generating revenue in 2014 of $47 billion. Six of the top 10 most valued brands belong to them. The merger, worth at least $104 billion, would result in AB InBev having a 30 percent share of the beer market worldwide. (It already has a 45 percent market share in the United States.)

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