Anheuser-Busch Sets Its Sights On Buying Coca-Cola

By on November 29, 2016 in ArticlesEntertainment

Anheuser-Busch InBev sure has been busy lately. The Belgian company, the world's largest brewer, recently completed its acquisition of SABMiller for $108 Billion, and apparently the company isn't done. InBev is now reportedly eyeing up Coca-Cola as well.

A day after the report came out regarding the potential business interest, the share value of AB InBev dropped by 1.85%. In fact, during that day the US stock was down about 4%, closing at $4.26 per share. The Coca-Cola stock value remained steady.

Coca-Cola's market capitalization is about $176 billion, and the soft drink company posted a 2015 revenue of $44.3 billion. This is not the first time that the Belgian Brewer has considered acquiring Coca-Cola, and it has also considered an acquisition of PepsiCo in the past.

(Joe Raedle/Getty Images)

(Joe Raedle/Getty Images)

According to InBev's "2020 Dream Incentive Plan," the company hopes to top $100 billion in annual revenue by the year 2020. This would then allow 65 senior employees access to a lucrative bonus plan, in which company executives would split $350 million in bonus money, about $5 million each. There's no doubt that Coke's $40+ billion yearly revenue would put them over the top.

Interestingly, Coca-Cola recently had to terminate many of its bottling contracts with SABMiller due to AB InBev's recent acquisition. Should the Coke acquisition occur, those contracts could be reinstated – a move which analysts believe would lower costs for both companies.

This definitely isn't a done deal, but if it does happen, it seems the sky is the limit for Anheuser-Busch.

Articles Written by Joshua R. Wood
Josh lives north of Pittsburgh with his wife and two dogs in a house they renovated together. Before moving to Pittsburgh, he received a degree in Creative Writing from West Virginia University, and he's currently working toward a Master's in English Literature at Duquesne University. Josh's passions include writing, photography, nature, disc golf, and rebuilding anything that's broken.
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