We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AB InBev (BUD) to Sell SABMiller's Eastern Europe Assets
Read MoreHide Full Article
Following the completion of its mega-merger with SABMiller in Oct 2016, Anheuser-Busch InBev SA/NV (BUD - Free Report) , alias AB InBev, is still in the process of fulfilling the regulatory requirements for the deal. In this regard, the company recently agreed to sell some of SABMiller’s eastern European businesses to Japan’s Asahi Group Holdings, Ltd. for €7.3 billion (or US$7.8 billion).
Per the deal, AB InBev will dispose SABMiller’s businesses in five countries namely, Poland, Czech Republic, Slovakia, Hungary and Romania (termed as CEE Business), as was already promised to the European Commission. The sale which awaits an approval from the European Commission, includes leading beer brands like Pilsner Urquell, Kozel and Tyskie, is likely to close in the first half of 2017.
The sale of aforementioned assets is a ploy on the part of the Budweiser maker to meet the antitrust commitments. However, the deal has significant importance for Asahi as it presents a lucrative opportunity to diversify outside its home market, where the brewers’ are plagued by an aging and shrinking population.
Additionally, this acquisition complements Asahi’s previous buy of the Western European brewing assets from AB InBev for €2.55 billion, including SABMiller’s premium beer brands Peroni and Grolsch, and British craft brewer Meantime. Together, the assets acquired from AB InBev provide Asahi the platform to expand in Europe and establish itself as a global player. Further, the recent acquisition will bring the company to the third spot among the Asian brewers.
While the deal raises the optimism of investors, we note that shares of AB InBev have dropped nearly 17% year to date. Moreover, this Zacks Rank #5 (Strong Sell) stock has underperformed the Zacks Categorized Beverages – Alcoholic industry which has declined 4.8% year to date.
Key Picks
Some better-ranked stocks in the broader consumer staples sector include Dean Foods Co. , Ollie's Bargain Outlet Holdings Inc. (OLLI - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) and Sysco Corporation (SYY - Free Report) which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dean Foods, with a long-term earnings growth rate of 12%, has surged nearly 25.5% year to date.
Ollie's Bargain has gained a whopping 75.5% year to date. Moreover, it has a long-term earnings growth rate of 18.9%.
Sysco has jumped nearly 5.1% year to date. The stock has a long-term earnings growth rate of 8.8%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AB InBev (BUD) to Sell SABMiller's Eastern Europe Assets
Following the completion of its mega-merger with SABMiller in Oct 2016, Anheuser-Busch InBev SA/NV (BUD - Free Report) , alias AB InBev, is still in the process of fulfilling the regulatory requirements for the deal. In this regard, the company recently agreed to sell some of SABMiller’s eastern European businesses to Japan’s Asahi Group Holdings, Ltd. for €7.3 billion (or US$7.8 billion).
Per the deal, AB InBev will dispose SABMiller’s businesses in five countries namely, Poland, Czech Republic, Slovakia, Hungary and Romania (termed as CEE Business), as was already promised to the European Commission. The sale which awaits an approval from the European Commission, includes leading beer brands like Pilsner Urquell, Kozel and Tyskie, is likely to close in the first half of 2017.
The sale of aforementioned assets is a ploy on the part of the Budweiser maker to meet the antitrust commitments. However, the deal has significant importance for Asahi as it presents a lucrative opportunity to diversify outside its home market, where the brewers’ are plagued by an aging and shrinking population.
Additionally, this acquisition complements Asahi’s previous buy of the Western European brewing assets from AB InBev for €2.55 billion, including SABMiller’s premium beer brands Peroni and Grolsch, and British craft brewer Meantime. Together, the assets acquired from AB InBev provide Asahi the platform to expand in Europe and establish itself as a global player. Further, the recent acquisition will bring the company to the third spot among the Asian brewers.
While the deal raises the optimism of investors, we note that shares of AB InBev have dropped nearly 17% year to date. Moreover, this Zacks Rank #5 (Strong Sell) stock has underperformed the Zacks Categorized Beverages – Alcoholic industry which has declined 4.8% year to date.
Key Picks
Some better-ranked stocks in the broader consumer staples sector include Dean Foods Co. , Ollie's Bargain Outlet Holdings Inc. (OLLI - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) and Sysco Corporation (SYY - Free Report) which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dean Foods, with a long-term earnings growth rate of 12%, has surged nearly 25.5% year to date.
Ollie's Bargain has gained a whopping 75.5% year to date. Moreover, it has a long-term earnings growth rate of 18.9%.
Sysco has jumped nearly 5.1% year to date. The stock has a long-term earnings growth rate of 8.8%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>