A-B InBev Deal

The deal is through without the much anticipated drama and M&A takeover battles. InBev really showed determination and intent in making this happen.

Its good for both companies that they did not take the hostile route. It could have meant just waste of time and money for both.

I am really amazed by InBev's ability to think about a $50 billion deal at a time when the US and world economy are under tremendous pressure.

Challenges for A-B Inbev:
a) Huge cultural differences - InBev was pretty successful in merging the Belgium brand with Brazillian brand. The experience of doing such big mergers will be of help.
b) No common operations for cutting costs. They would not get much synergies from cost savings.
c) AB's primary market is in US and AB's brands are on a declining trend in US.
d) Extract synergies to justify $70 per share.

Advantages:
a) Huge global portfolio
b) Weak Dollar
c) Should not face antitrust problems
d) AB has a line of new products in the pipeline which would be beneficial for InBev.

What are your thoughts on the advantages,challenges and synergies for InBev.