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Grand Strand Red Neck
07-15-2008, 09:27 AM
I wonder how Monster feels about this deal ? Also what about A-B's new nonalcoholic division that is in the works ?

greg
07-15-2008, 03:04 PM
Usually the buy out clause would be for AB if someone bought Hansens/Monster, but this is different.
Considering what InBev paid for AB I think they would want to keep a high margin brand in the portfolio. Beer sales are flat and Inbev is known to be a HUGE cost cutter once they buy someone. It only makes since that the high margin products stay on the truck.

greg
07-17-2008, 05:10 PM
As a follow up to my previous post about the Buy out clause: There is a clause in the deal that says if either party can not get this deal done on thier part that they will owe the other party $1.25Billion.!!!

"Anheuser-Busch Cos. Inc. said Wednesday that its $52 billion deal to be taken over by InBev carries a breakup fee of $1.25 billion, according to a filing with the Securities and Exchange Commission.

Either side would have to pay the fee if it was responsible for the deal falling through. "

The article did say that employee retention bonuses where also a big part of the deal. Looks like Augustus negotiated some good will into the contract.