AB InBev Gulps Down Korea's Top Brewery in Global RevivalBy
If anyone is still having any doubts about the financial success of AB InBev’s $52 billion hostile takeover of Anheuser-Busch nearly six years ago, they should take a look at yesterday’s acquisition. The Belgian-based company said it would spend $5.8 billion to reacquire Oriental Brewery, the leading South Korean beer manufacturer. AB InBev sold the Asian beermaker in 2009 to KKR for $1.8 billion.
You may have noticed that the world’s largest brewer is paying three times more than the 2009 selling price for Oriental. Is that a bad price? Not really. The company borrowed $54 billion to finance the Anheuser-Busch acquisition and had to take measures to reduce its debt, such as retrieving BlackBerries from many of its new American employees and requiring them fly commercial. And that was only the beginning.
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