Description: The Globe and Mail categorized it as a “megabrew”. The two largest brewers in the world have combined to form an organization that will account for approximately 1/3 of the beer produced worldwide. Anheuser-Busch announced that is purchasing SAB Miller PLC for about $143 billion. Some maneuvering may be necessary in both the US and China to keep the extremely large “megabrewer” from having too much control in the marketplace.
Date: November 11, 2015
1) What would be some of the key strategic issues you would have to deal with in a mega-merger like this?
2) What would be some of the key accounting issues in accounting for such a consolidation?
3) How can consumers be protected in markets where the megabrewer has effective market control? Is there a point at which a brewer’s percentage of the market share is too high?