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.

Source: Globeandmail.com

Date: November 11, 2015

Link: http://www.theglobeandmail.com/report-on-business/international-business/us-business/ab-inbev-launches-sab-bid-to-sell-millercoors-stake/article27205423/

Discussion Points:

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?