AB InBev to Reacquire Can Plant Stake for $3 Billion
Brewer to buy back 49.9% stake from an Apollo-led group, expecting the deal to be accretive to earnings per share in its first year.
Anheuser-Busch InBev (NYSE: BUD), the world's largest brewer, has announced it will exercise its right to reacquire a 49.9% stake in its U.S.-based metal container plants for approximately $3 billion. The move reverses a 2020 deal and signals a strategic push to bring a critical part of its supply chain back under full ownership.
The stake is being bought back from an investor group led by Apollo Global Management, according to company statements. AB InBev said it expects the transaction to be accretive to its earnings per share (EPS) starting in the first full year of ownership, a detail that underscores the financial rationale of reconsolidating the assets.
Shares of the brewing giant, maker of Budweiser, Stella Artois, and Corona, traded at $63.27 in recent market activity. The company currently commands a market capitalization of approximately $124.6 billion. The stock has traded in a range of $45.07 to $71.99 over the past 52 weeks.
The decision marks a significant strategic pivot from late 2020, when the brewer sold the minority stake in a move to raise cash and deleverage its balance sheet. By buying back the asset, AB InBev is signaling renewed financial flexibility and a strategic imperative to secure its supply chain.
Regaining full control of its can manufacturing facilities provides the company with greater operational resiliency. Vertical integration of this nature can insulate a manufacturer from commodity price volatility in materials like aluminum and protect against the kind of supply chain disruptions that have challenged global industries in recent years. Capturing the full cash flow from these plants, rather than sharing it with a minority partner, provides a direct path to the forecasted earnings accretion.
The $3 billion deal is a sign of confidence from AB InBev's management in the company's long-term cash generation. After years focused on paying down debt accumulated from major acquisitions like its takeover of SABMiller, the company is now deploying capital to strengthen its core operational footprint. This move is expected to enhance efficiency and control over the production and packaging of its extensive portfolio of beverages for the key North American market.