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. 1. Is this a strategic model for emerging market companies to compete with the main global players? 2. Should the Brazilian Government approve the merger? 3. 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.
