While the Belgian Brewer InBev has offered a significant premium to shareholders of the American brewer Anheuser-Busch, the deal will face significant obstacles given that we’re in the middle of election-year politics. If approved, the merger would create the world’s largest beer company.
As the take-over battle heats up, political figures like Missouri Governor Matt Blunt and even Democratic nominee Obama have been drawn into the fight. Now, as reported yesterday in the WSJ, Anheuser-Busch has filed a suit against InBev claiming that the Belgian-Brazilian brewer was trying to acquire the U.S. brewer using an “illegal plan and scheme.” The suit references the company’s ties to Cuba by claiming that InBev’s operation in Cuba renders the Belgian brewer unable under U.S. law to manage, supervise or otherwise monitor the combined business from a U.S. location. Anheuser-Busch describes InBev’s business in the country as “substantial,” citing its 570 full-time workers and 44% share of the Cuban beer market.
InBev responded quickly to the allegation. “Like many multinational companies, InBev has modest activities that relate to Cuba. These do not violate U.S., European Union or international law.” If successful in the case, Anheuser-Busch could prevent InBev from taking further steps to solicit its shareholders until InBev provides full and accurate information concerning its proposal. InBev is claiming publicly that it has received strong support from a number of top shareholders, including Barclays, Deutsche Bank and JPMorgan.
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