An AmBev-Interbrew union would create the world's second biggest brewer, after U.S. giant Anheuser-Busch.
By Associated Press
Published March 2, 2004
SAO PAULO, Brazil - Brazilian beverage giant AmBev is in talks with Belgium's Interbrew brewer regarding a possible "substantial transaction," the Brazilian company said Monday in a formal statement to the Brazilian Stock Exchange.
"The parties have reached no accord," the statement said, adding that no guarantees exist that any agreement will result from the negotiations.
Interbrew has refused to be specific about the type of deal it is considering. The statement said both companies would decline to comment "until such time as discussions have been concluded."
AmBev, Brazil's largest beer brewer and the world's fifth largest, also holds interests in breweries in other Latin American countries as well as a major share in the Brazilian soft drinks market. It was created in 2000 by the merger of brewing giants Antarctica Paulista and Brahma.
Interbrew, one of the world's oldest beer companies with operations in 21 countries, is the world's third largest brewer. It has some 200 brands on sale in 120 countries, including Stella Artois, Leffe, Bass Ale, Labatt Blue and Rolling Rock.
A full-blown merger between the companies would result in creation of the second biggest brewer in the world after U.S. giant Anheuser-Busch, with an estimated 10-billion euros in annual sales.
News reports in Brazil said the talks would most likely lead to a merger that would allow the two companies to swap shares and operate separately at first, then later form a consolidated company.
AmBev shares rose $3.25, or 13 percent, to close at $27.75 on the New York Stock Exchange. Interbrew shares fell more than 3 percent to close at 23.38 euros ($29.21) in Brussels.
