AB InBev to Buy Back U.S. Can Plant Stake from Apollo for $3 Billion
The world's largest brewer will exercise an option to repurchase a 49.9% interest in its U.S. container business, unwinding a 2020 deal and bringing a key supply chain component fully back in-house.
Anheuser-Busch InBev (NYSE: BUD) is bringing a core part of its U.S. manufacturing operations back under full ownership, announcing it will repurchase the 49.9% stake in its metal container plants for approximately $3 billion. The seller is a consortium of institutional investors led by private equity firm Apollo Global Management.
The transaction, expected to close in the first quarter of 2026, effectively unwinds a deal struck in late 2020 when the brewing giant sold the minority stake for a similar consideration. That original agreement was designed with an option for AB InBev to buy back the stake after five years, making this week's announcement the execution of a long-term strategic financial plan rather than a sudden reversal.
Shares of AB InBev were little changed on the news, trading around $63.27 in a sign that the market had anticipated the move. The company, with a market capitalization of approximately $124.6 billion, will use cash on hand to fund the repurchase, which it expects to be accretive to underlying earnings per share in the first full year of ownership.
The deal underscores a strategic priority for major manufacturers to secure and control their supply chains. The U.S. metal container business, which includes seven plants across the country, is a critical component of AB InBev's production network, supplying the aluminum cans and lids for iconic brands like Budweiser, Michelob Ultra, and Bud Light.
When the initial stake was sold to the Apollo-led group in December 2020, AB InBev used the proceeds to help pay down debt, a key priority for the company at the time. While it sold a financial stake, AB InBev retained operational control of the plants, ensuring its production schedules and quality standards were uninterrupted. The 2020 transaction was a financial maneuver to strengthen its balance sheet while maintaining operational integrity.
Exercising the buyback option now signals a shift in capital allocation priorities. With its balance sheet in a healthier position, the company is now moving to consolidate ownership over core assets, ensuring long-term supply stability and capturing the full financial benefit of its vertically integrated operations.
The repurchase is a logical step for the world's largest brewer, providing it with full ownership of a business that is fundamental to its largest market. By eliminating the minority interest, AB InBev simplifies its corporate structure and insulates itself from potential future supply chain negotiations or price volatilities associated with third-party ownership. The move was widely reported across financial news outlets as a return to full ownership.
For Apollo and its partners, the investment represents a successful, five-year cycle. The funds acquired a stake in a stable, cash-generating asset with a built-in exit strategy, earning a return on their capital from a blue-chip partner. The predictable nature of the buyback provision made it an attractive proposition for the institutional investors involved.