WRAPUP 2-InBev profit beats, Bud meets; deal seen closing soon

Thu Nov 6, 2008 5:47pm EST
 
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* On track to close Anheuser deal by year end

* Anheuser says deal could get U.S. antitrust okay in Nov

* InBev Q3 core profit 1.39 bln euros vs view of 1.37 bln

* Anheuser Q3 adjusted EPS $1.05 in line with Wall St view

* InBev shares up 4.3 pct; Anheuser up 1.5 pct (Adds comments from Anheuser CFO, analyst, details)

By Philip Blenkinsop and Martinne Geller

BRUSSELS/NEW YORK, Nov 6 (Reuters) - InBev NV INTB.BR and Anheuser-Busch's BUD.N $52 billion deal to create the world's biggest brewer could get U.S. antitrust clearance as early as November, and InBev sees no changes to the deal terms or financing.

Despite concerns from some investors that the global financial crisis could affect the deal, both companies insisted the acquisition is on track to close by year-end. InBev last month had postponed a $9.8 billion rights issue because of the markets turmoil. [ID:nLO206424]

Belgium's InBev made the remarks after reporting quarterly profit ahead of market estimates despite rising costs. U.S.-based Anheuser reported that quarterly net profit slipped as it took charges related to its takeover by InBev.

InBev CFO Felipe Dutra told a conference call the deal to buy the maker of Budweiser, agreed in July before the financial crisis deepened, was awaiting approval by Anheuser shareholders on Nov. 12, and by regulators. [ID:nSP122921]

"I firmly believe the deal will be closed based on the agreed-upon conditions," he said.

"The rights issue will be executed as part of the capital structure of the transaction," he said, adding the delay was the result of volatility rather than price or demand.

Anheuser's Chief Financial Officer W. Randolph Baker said it was possible that antitrust approval by the U.S. Department of Justice could come in November.

"It is a possibility, but again, the statements by both (Anheuser) and InBev are that we expect the transaction to close by the end of the year," Baker said.

Carlos Brito, InBev's chief executive, told investors that the maker of Stella Artois and Beck's had earmarked five non-core assets for possible sale, and might reach a $7 billion divestment target by selling two or three.

The news came a day after Molson Coors Brewing Co (TAP.N)TAP.TO emerged as the holder of a 5 percent stake in Australia's Foster's (FGL.AX). [ID:nSYD424844]  Continued...

 
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