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)
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.
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