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AB Inbev spending $4.5 billion for oriental brewery

Beer is a big business these days with it appearing even in a shaky economy a lot of people want to enjoy a refreshing daily brew or two to relax. Things are going so well for AB Inbev, the firm is nearing a $4.5 billion deal to reacquire an oriental brewery, reported NASDAQ on Jan. 17, 2014. According to sources Anheuser-Busch InBev SA is near a deal to reacquire leading South Korean brewer Oriental Brewery from KKR & Co. and Affinity Equity Partners for about $4.5 billion.

Bottles of Anheuser-Busch Budweiser and Grupo Modelo, Modelo beers are displayed at the Chandi Wine and spirits store in Miami, Florida.
Joe Raedle/Getty Images

The talks have been progressing with an agreement expected soon. Oriental Brewery's popular brands include Cass, OB Golden Lager and Cafri. In 2009 Belgium's AB InBev sold Oriental Brewery for $1.8 billion to help pay down debt following its $52 billion acquisition of Anheuser-Busch in 2008. The firm retained the right to reacquire Oriental Brewery within five years at financial terms which were predetermined. That right expires July 24.

The New York Times Dealbook has confirmed Anheuser-Busch InBev is said to be near a $4.5 Billion deal for a Korean brewer. This deal for Oriental Brewery, which is a South Korean brewer, would be the second largest alcoholic beverages transaction of the year, following Suntory’s agreement to acquire Beam Inc. this week for $13.6 billion. This would also represent part of AB InBev’s plans to expand internationally. The thirst of a lot of people for some good beer is making a good brew as desirable as high quality oil for investors.

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