Anheuser Busch (BUD) Stock Down After SAB Miller Deal Approved
NEW YORK (TheStreet) -- Shares of Anheuser Busch Inbev (BUD) - Get Report are sliding by 1.05% to $124.84 in early morning trading on Thursday, after the St. Louis-based beer powerhouse and rival beverage retailer SABMiller received antitrust approval for their $107 billion merger, Reuters reports.
Now pending regulatory approval from China, the deal is expected to close by the second half of 2016, Anheuser Busch said in a statement. As part of the deal, Anheuser Busch will also divest rights to any SABMiller beer brands sold in the U.S.
Still, top shareholders have reportedly considered calling for a renegotiation of the terms of the deal, citing the recent decline in British currency, Reuters reports.
The deal is poised to overshadow other beer retailers such as Heineken and Carlsberg.
"Our combination with SABMiller will bring more choice to more beer drinkers - and extend the global reach of our iconic American brands, such as Budweiser - in markets outside of the U.S.," Anheuser Busch CEO Carlos Brito said in a statement.
Anheuser Busch beer will now add more breweries in markets such as Latin America and Asia.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate INTL BUSINESS MACHINES CORP as a Buy with a ratings score of B+. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
You can view the full analysis from the report here: IBM
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