Wednesday, 16 July 2008

SABMiller Sees Opportunity in Rivals' Merger

SABMiller, making lemons into lemonade, believes "InBev’s takeover of rival Anheuser-Busch will give it an opportunity to build on its MillerCoors venture in the US."
The InBev takeover could result in “significant disruption” of Anheuser’s operations [as costs are cut] , SABMiller said yesterday. Anheuser is MillerCoors’ biggest competitor in the US...

Imara SP Reid analyst Warwick Lucas said Anheuser held more than 50% of the US beer market. With such a dominant position, the chances of it growing market share were slim, so it had little option but to cut costs.

“This deal is good news for SABMiller” in the US, Lucas said.

Thanks to "Leedy" for the tip.

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