...Scenario Analysis: Fitch Ratings examines the key credit issues that investors should take into account over a possible acquisition by Anheuser-Busch InBev NV/SA (ABI, A/Stable) of SABMiller plc (SABM, BBB+/Positive). We caution that this report is highly theoretical and Fitch has not validated its assumptions with the management of ABI, AmBev S.A. (A/Stable) or of SABM. Potential Merits and Motivations: The industry is local but has lent itself to consolidation, and not just where combining two players reduces competition in an individual market. A tie-up between the two leaders ABI and SABM would create a global player, thus further widening the gap with rivals Heineken and Carlsberg Breweries A/S (BBB/Stable). It would be exposed to many high-growth and profitable markets and would require only limited divestments in relation to market overlaps. Divestments would alleviate some of the debt burden. Leverage Increase: We calculate that ABIs net leverage (net debt/EBITDA) could grow to...
