James Silverton wrote:
> Steve wrote on Tue, 15 Jul 2008 02:20:09 +0000 (UTC):
>
>>> Yet InBev has said one of the main reasons they want AB is to
>>> take Bud international; they see that as a huge growth
>>> market.
>
>> Yes, cans of Bud are popular in Dublin and London. Because...
>> they're not any worse than Stella.
>
>> Despite being brewed partly from rice. (Maybe they have
>> an export formula that's better?)
>
>> IMO, etc. etc.
>
> I don't drink Budweiser unless nothing else is available. However,
> Budweiser used to be proud of the fact that they used rice and even
> advertised it! Why Stella Artois wanted Budweiser, I don't know, since
> they already make the Budweiser of Belgium but they probably want the
> factories (no error) and distribution network.
>

They didn't want the factories or the distribution network per say. They
wanted to temporarily boost their profits by adding the profits of the
acquired company to their accounting books. They can amortize the
purchase cost, so in the short term it makes the company look very good
on paper.

I know: I work for a private company that was just bought in February of
this year by a publicly-traded company for exactly that same reason.

Long-term plans by InBev probably do take into account AB's tangible
(factories, equipment, etc.) and intangible (distribution network, brand
loyalty, customer base) assets.