Stock analysts predicts A-B, InBev alliance

July 25th, 2007 | Posted by Real Beer

Analysts for Citigroup predict an alliance between Anheuser-Busch Cos. and Belgian-based InBev likely and write it “will have a domino effect on the entire global industry.”

Anheuser-Busch “is at a critical juncture at this stage as it has managed to box itself into a corner,” the analysts wrote. It “has no other choice, in our view, but to combine with another global beer player to quickly dig itself out of the slow growth trajectory and restore the company’s position in global brewing.”

A big reason Citigroup is making the prediction: It believes A-B CEO August Busch IV is “incredibly focused on winning and regaining A-B’s past glory,” the report said.

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