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Why Budweiser Was Forced To Kill The Year's Biggest IPO

• https://www.zerohedge.com, Tyler Durden

The hope was that the company's Asian subsidiary would position it to be the premium beer leader in China and the company's goal was to raise as much as $9.8 billion for a total valuation of $64 billion. But AB InBev was instead forced to shelve the IPO after tepid investor interest in Hong Kong.

The setback can be blamed on a couple of things, according to Bloomberg: first, younger consumers are moving away from traditional beers and towards craft cocktails. Also, competition in China is robust, especially after Heineken signed a blockbuster deal with a state owned company. This meant the appetite for Budweiser's IPO was very weak.

Jefferies' analyst Ed Mundy told Bloomberg Television on July 12 said: "We do feel that there are better places to be invested within beer, such as Carlsberg or Heineken."

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