August Busch IV said “While the process was at times difficult for all parties, in the end, the right outcome happened for everyone” as comment on the recent acquisition of his family’s company by InBev. I would love to have a glimpse into some of those “difficult” discussions and if there were any personal bests set in depths of facial redness or heights of blood pressure readings.
There will certainly be opposition from other areas, as well. From a business perspective, the deal appears to be solid, as indicated in a description of the Wall Street Journal account of the deal, but will no doubt face opposition when the potential efficiencies start to be realized and, as Tom Pirko of Bevmark consulting says here the company is forced to behave like other global companies in pushing workers and suppliers to market levels. Busch’s “everyone” likely does not include suppliers of hops and electricity that will bear the brunt of increased “buyer power” from this new entity.
Can we assume that this is an objectively good deal?
If so, all parties, including workforce and suppliers, should be content: benefits are reasonable, and any heartache was eventual. The dollar figure ($70/share or $52 billion) gets a lot of attention, but as always there is much more to the deal than the price. I am intrigued by the decision to rename InBev to include the legacy of the Busch family. “Anheuser-Busch” is much more recognizable, I have to assume, to Bud drinkers than “InBev” is to those imbibing Stella-Artois, let alone any Labatt product.
Perhaps we will never know what it was that tipped the scale on this negotiation, but if August Busch IV was able to move the company into the future more easily given that the family name will live on, more power to him and to those who were at the table to close the deal.
This is obviously not all about ego and family legacy. Busch et al have two seats on the Board, and InBev will be able to benefit from this hands-on experience in further exploring the US market, as well as bringing Bud products to the rest of the world. It is fascinating, however, to see the subtle indications of what were obviously emotionally heated discussions. I am not surprised that a couple of cold ones were cracked at the end of it all. Well deserved!
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- Recent Posts
- Blogroll
- Meta
