Beverages

InBev, A-B Talking Merger?

World's largest beermakers mum as shares rise

BRUSSELS, Belgium -- Shares in InBev SA and Anheuser-Busch rose on a Brazilian newspaper report on talks to unite the world's two largest beermakers, said the Associated Press.

The Belgium-based brewing giant declined to comment on the report in Sao Paulo business daily Valor Economico that InBev had held preliminary merger talks with its U.S.-based rival. The newspaper cited an unidentified source which it said was close to leading Brazilian investors.

We do not comment on market speculation, said Gwendoline Ornigg, InBev's director [image-nocss] of corporate external communications.

Anheuser-Busch echoed that, saying it was the company's policy to not confirm, deny or speculate on reports of potential investments, acquisitions, mergers, new business partnerships or other transactions.

Shares in InBev, which makes brands such as Stella Artois and Brahma, gained 3.9% to 52.75 euros ($68.95) in Brussels trading.

Shares in St. Louis-based Anheuser-Busch, the maker of Budweiser and Bud Light, rose more than 3% to $51.90 on the New York Stock Exchange (NYSE).

The report boosted other beermakers, including Heineken NV, up 2.3%, SABMiller PLC, up 2% and Scottish & Newcastle, up 1.2%. Shares of Molson Coors Brewing Co. rose more than 6% after the company reported fourth-quarter profit rose more than four-fold on increased sales volume, a lower tax rate and cost savings.

Valor Economico said that since InBevwhich was formed by a merger of Belgium's Interbrew and Brazil's AmBevhad overtaken Anheuser-Busch to become the world's largest brewer, it felt it could negotiate from a position of strength.

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