Is BUD the Next Big Buyout



Nilus Mattive takes a closer look at the possible buyout of Anheuser Busch by InBey SA, a Belgium Brewer. Mr. Mattive discusses how this acquisition could benefit investors.

On May 23, the Financial Times reported that InBev SA, the giant Belgian brewer, is working on a $46-billion takeover bid for Anheuser-Busch (BUD). The shares rose to a new all-time high of $58 shortly after the news hit the wires. A $46-billion buyout implies an acquisition price of $65 a share. That represents a 14.8% gain from BUD's closing price before the Memorial Day holiday. Should this deal end up happening, even new investors stand to make a profit. Rumors of a BUD takeover have circulated before, but this potential acquisition of yet another great dividend payer proves many of the things Mr. Mattive has been reporting.

It's no surprise that investors are after major U.S. companies like Wrigley and Anheuser-Busch. These companies benefit from steady demand and will always remain in style. They sell items that consumers buy no matter what. Their products are either necessities or very affordable luxuries. No doubt many of these businesses are already fairly mature in the U.S., but that is not necessarily a bad thing. That's why they're able to send out dividends in a predictable fashion.

More important, these businesses are going to benefit from tremendous foreign demand. The Industrial Revolution has already played out in the U.S., but foreign citizens are proving to demand the same brands which remain popular in the U.S. And even in the rare cases where local brands have taken root, the big U.S. companies could eventually come in and take precedence. Anheuser-Busch is a perfect example.

"Just look what it's done in China, the world's largest beer market The company has a 97% equity interest in the Budweiser Wuhan International Brewing Company in Wuhan, China. It owns Harbin Brewery, the fourth-largest brewer in China. And it has a 27% stake in Tsingtao Brewery Company Ltd.," Mattive states.

To read this issue online, please visit:

http://www.moneyandmarkets.com/Issues.aspxInBev-Wants-Anheuser-Busch-1823

About NILUS MATTIVE & MONEY AND MARKETS     

Nilus Mattive, a financial analyst at Weiss Research, is the editor of Dividend Superstars, a monthly publication and is also the editor of the company's daily e-letter, Money and Markets. Formerly a senior editor of Standard & Poor's The Outlook, the oldest continuously published investment newsletter in the country, he has written for a number of investment websites, including BusinessWeek and Individual Investor. Mr. Mattive is the author of The Standard & Poor's Guide for the New Investor (McGraw-Hill, 2004) and has appeared on the popular investment radio show, Traders Nation, to discuss his views on personal finance.

Mr. Mattive graduated cum laude from the University of Scranton.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.





Is BUD the Next Big Buyout