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Friday, June 08, 2007

Anheuser Bush and InBev - Inevitable Merger

An article out by the Wall Street Journal details a distribution shortage by Anheuser Bush relating to its import and distribution of InBev's product portfolio from Europe to the US. The shortage is attributed to a legal quagmire, which would require A-B's customers to pay off the previous distributor's contract. So of course, they aren't doing that and not buying the product from A-B apparently. This has led the Wall Street Journal to conclude that A-B and InBev will likely be forced to merge to end the problem.