Megacervejaria concentrates sales in AL

The Latin America will be the largest source of revenue and operating earnings of the company resulting from the acquisition of Anheuser-Busch InBev SABMiller (AB InBev). Yesterday the owner of Brazilian Ambev made his formal proposal of purchase of rival.
The new company will have 29% stake in the global market, annual revenue of $ 63.6 billion and earnings before interest, taxes, depreciation and amortization (Ebitda) of R$ 24.2 billion. The Latin American market will respond by 33% of global revenue and 40% of Ebitda.
The structure that the operation in the region has not yet been hit by the two companies. In Conference calls for investors, market analysts and journalists, the President of AB InBev, Carlos Brito, just made it clear that the acquisition of SABMiller will be funded out of resources of Ambev. The payment will be done with bank loans for a total of $ 75 billion, plus bonus issuance and issuance of shares.
"It is too early to speculate how the operation in each country," said the Executive. The official announcement responds to questions from analysts, who regarded possible participation of Ambev in the financing of the merger.
Still, the expectation is that the Brazilian company has any changes in its structure in the coming months, whereas AB InBev does not have another operation in Latin America unless the Ambev. "The merger will bring changes to Ambev, in the sense that the assets of SABMiller will be incorporated into the new structure formed with the merger," says Jeremy Cunnington, senior analyst at Euromonitor International.
Trevor Stirling, analyst at Bernstein Research, also believes that, throughout the process of merger, the structure of Ambev could be used somehow. An example would be the sale of the assets of SABMiller in Latin America for Ambev.
Bashir said he expects annual savings of $ 1.4 billion over the next four years with the merger and recurrent earnings of synergy in the following years. According to the Executive, 20% of the earnings will be obtained with changes in the structure of production and packing; other 25% will be achieved in the area of distribution of the breweries.
The company also provides that 20% of synergies will be achieved with an improvement in the management of operations and 35% will come with the realignment of administrative costs and cuts with overlays on administrative part all over the world. "Not yet calculate how it will be in each country. The reformulation of the areas still being built by the two companies, "said Brito. In the view of analysts, it wouldn't make much sense for a group who works constantly to reduce costs, maintain two distinct operations in Latin America.
The joint operations in Latin America would not bring much change to Ambev in Brazil and Argentina, countries in which it's leader with more than 60% of sales and where SABMiller holds very low participation. But would open doors in other markets. According to Euromonitor consulting, SABMiller owns 98% of the beer market in Colombia and 95.1% of sales in Peru.
Brito said InBev sees in the biggest African market growth potential for the new company in the future. While sales of beer in the world will grow 16% over the next ten years, in Africa, the advance will be 44%. AB InBev also may find some difficulty in increasing the sales of the SABMiller brands in the countries of Latin America where the company already has a mature operation. In 2014, SABMiller's sales in the region grew by 5.9%, while sales of AB InBev increased 17.9%.