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Anheuser-Busch InBev Acquisition of SABMiller: What Next for Megabrew?

By Massimo Massa,  Ludo Van der Heyden,  Jean Wee
Published 11 Mar 2024
Reference 6704
Topic Economics & Finance
Industry Consumer Goods,  Food and Beverages Production
Region Global
Length 34 page(s)
Language English
Inspection copy
Teaching note
6.00
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Summary

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.

Teaching objectives

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.

Keywords
  • 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
About the authors
Massa

Massimo Massa

Professor of Finance
Van der Heyden

Ludo Van der Heyden

Emeritus Professor of Technology and Operations Management
Wee

Jean Wee


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