Anticipating the remedies
Our antitrust strategy documented the precise order in which the filings needed to be made around the world.
We then established a centrally co-ordinated global team (comprising our lawyers and leading practitioners from more than 80 national firms) to implement the plan.
We assessed what remedies would be needed to avoid prolonged investigations in key jurisdictions and pre-negotiated the sales of assets in multiple countries. The most significant remedy packages were devised with AB InBev before it had even approached SABMiller, to ensure the smoothest possible path for the transaction.
We also proactively dealt with public interest concerns, for example in South Africa where AB InBev agreed a set of public interest commitments with the Minister of Economic Development. These included a secondary listing for the combined group on the Johannesburg stock exchange, development initiatives, local investment and a continued commitment to SABMiller's broad-based black economic empowerment scheme.
Managing shareholders, planning strategy
The novel structure combined an offer and merger process in Belgium with a UK scheme of arrangement. We also created a new holding company, listed in Belgium, Mexico, South Africa and the United States.
To manage the competing demands of SABMiller's shareholders, we designed a bespoke, unlisted security in the combined company that is convertible to ordinary shares after five years. The amount of securities offered was capped to limit dilution of the AB InBev shareholders and help all parties achieve their ambitions.
Throughout the deal we acted as strategic advisers to the AB InBev board, leading them through the legal challenges across the world and helping plan the strategy for negotiations with SABMiller.
These became particularly tense when, as completion drew near, the UK's Brexit vote led to a sharp decline in sterling that ultimately required AB InBev to increase its offer.
Opening up opportunities
The deal enabled AB InBev to establish itself as a genuinely global brewer and one of the world's biggest consumer products companies.
While it was already the no. 1 brewer by sales, AB InBev has now acquired valuable assets in key emerging regions with strong growth prospects such as Africa, Asia and Central and South America. It will be able to provide more choices for beer drinkers in new and existing markets.
This transformative transaction was executed in just 13 months. In the words of AB InBev itself, it was 'a world-class team and a world-class result'.
The Acquisition of Anheuser-Busch Breweries: A Case Study
597 WordsFeb 3rd, 20182 Pages
The company was founded in 1852 and has a deep heritage in American culture (Anheuser Busch, 2012). Furthermore the company has built a market share comprised of nearly half of the entire U.S. market (48.9%). The company's success has also put it in a position in which it can be incredibly generous to various communities and causes. In Saint Louis, Missouri, where the company headquarters are located, Anheuser Busch has a long history of charitable activities within the local community. However, a fairly recent development has worked to change the culture at the company. In 2008 Anheuser Bush was purchased by a Belgium company, InBev. InBev is one of the largest alcoholic manufactures and distributors in the world and operates in over one hundred thirty different countries. Furthermore, the purchase significantly increased the size and scope of the parent company's operations. The company is so large that in order to complete the deal, the regulators in the United States required that InBev quit importing certain brands of beers under different labels to the U.S. market so that InBev would meet anti-trust regulations.
In 2008, Anheuser Bush ranked as "America's Most Admired Companies" in regards to their social responsibility; a position in which they held for the previous four years as well (Ethical Performance, 2008). The company had made significant achievements…