Anheuser-Busch-InBev sells breweries
European correspondent Stephen Beard talks with Bill Radke about Anheuser-Busch-InBev's deal to sell a slew of its East-European breweries.
Anheuser-Busch InBev logo (http://www.ab-inbev.com/)
More on International, Europe, Food
TEXT OF INTERVIEW
Bill Radke: The world's largest brewer -- Anheuser-Busch-InBev -- signed a deal this morning to sell a slew of its East-European breweries. This is the latest sell-off since InBev and Anheuser-Busch merged last year. Let's bring in our Europe correspondent Stephen Beard live from London. Good morning.
Stephen Beard: Good morning Bill.
Radke: Why is the company selling all these breweries?
Beard: Mainly to raise cash to pay off debt. InBev, the Belgian company, borrowed very heavily to buy Anheuser-Busch last year, and the combined group now owes more than $50 billion. And the group has been selling assets to pay down that debt. Asset sales so far have raised around $9 billion, so they're getting there.
Radke: What does this selling tell us about the health of this giant, Anheuser-Busch-InBev creation?
Beard: Well analysts are saying so far it shows that the takeover appears to be paying off. The asset sales are going well. They've sold theme parks, car-making plants, breweries of course. And they're fetching pretty good prices in what are difficult market conditions. The stock market certainly seems to like this deal. The combined company share price has doubled over the past year.
Radke: So what could this mean for the company's American operations?
Beard: Well it's perhaps not too positive. One analyst I spoke to today said beer sales are still struggling, particularly in the U.S. And the company is going to have to take out costs there. American job losses are a distinct possibility.
Radke: Stephen Beard joining us live from London. Thank you.
Beard: OK Bill.
Comments
Comment | Refresh
From Brighton, MI, 10/15/2009
I'm sorry, I don't understand how selling off assets that existed before the merger can pay off debt incurred to perform the merger. There is nothing created in that series of transactions that I can see; it's all liquidation of a company to pay off debt incurred in the process of buying the same company.
What gives?
Post a Comment: Please be civil, brief and relevant.
Email addresses are never displayed, but they are required to confirm your comments. All comments are moderated. Marketplace reserves the right to edit any comments on this site and to read them on the air if they are extra-interesting. Please read the Comment Guidelines before posting.
You must be 13 or over to submit information to American Public Media. The information entered into this form will not be used to send unsolicited email and will not be sold to a third party. For more information see Terms and Conditions and Privacy Policy.