This case, described as the last big merger in the global beer industry, involves a valuation of the merged company using a basic discounted cash flow (DCF) methodology. Students are asked to calculate and compare the value of the merged entity with the standalone valuations of the respective companies to see if there is indeed value in merging. An additional consideration is the impact of a large net cash position on the company’s stock price when growth stalls.
The case can be used in both MBA and undergraduate courses on finance, in particular valuation in M&A, and for executive education programmes on these topics.
- M&A
- Takeover
- Value of Cash
- Growth
- Over Payment
- Offer Price
- Global Market
- International Expansion
- Antitrust Issues
- Divestiture
- Means of payment
- Synergies
- Debt Finance Deals
- Value Creation
- Q12024