AmBev, the merger of the two largest Brazilian beverage companies (Brahma and Antarctica) wants to become a strong South American multinational, able to compete with the main global players in this sector. AmBev creation process raised an important polemic. Competitors said AmBev would have a monopolistic power (controls about 70% of the Brazilian beer market). The Brazilian Government had to intervene and, finally, AmBev was authorized only with some minor restrictions.
The teaching objective is to illustrate the process of creating a multinational from the merger of the very powerful and distinct local players in the Brazilian market.
Is this a strategic model for emerging market companies to compete with the main global players?
Should the Brazilian Government approve the merger?
Is this the best way for the internationalization of a Brazilian company? Or is the merger a defensive one to avoid becoming a potential acquisition target?
- Brazilian multinational
- Beverage company
- Merger
- Global competition
- Anti-trust regulations
- Lobbying government
- Internationalisation
- Latin America
- Corporate culture
- Global strategy. AR2001
- RD0101
