Anheuser-Busch to Buy Minority Stake in Leading Chilean Brewer, Compania Cervecerias Unidas S.A.; Investment Expands American Brewer's Presence in South America.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 4, 2001 American brewer Anheuser-Busch Companies, Inc., (NYSE NYSE See: New York Stock Exchange :BUD) today announced its purchase of approximately 14 percent of Chilean-based Compania Cervecerias Unidas S.A. (NYSE:CU) (CCU CCU abbr. 1. coronary care unit 2. critical care unit CCU critical care unit. CCU Critical care unit, see there ), a diversified beverage company operating principally in Chile and Argentina. CCU is the leading brewer in Chile, holding 90 percent domestic market share. The two brewers have been partners for five years in Argentina, where Anheuser-Busch holds 11 percent of CCU's Argentine beer subsidiary and where CCU locally brews and sells Anheuser-Busch's Budweiser beer brand. Budweiser brewed by CCU in Argentina is also exported to Chile and Paraguay. In Chile, CCU imports and distributes Budweiser. Anheuser-Busch will pay an estimated $224 million for approximately 45 million existing shares in the Santiago-based CCU parent company. These shares will be purchased from Compania de Inversiones Mobiliarias Limitada, a subsidiary of Compania de Petroleos de Chile S.A. (COPEC), a leading Chilean corporation, and from Chilean pension funds. The transaction is expected to close before January 10. The purchase expands Anheuser-Busch's presence in the fast-growing South American beer and beverage markets. Beer represents 55 percent of CCU revenues. CCU produces in excess of 4 million barrels (5 million hectoliters) of beer annually globally. CCU was established in 1902 and is the second-largest Chilean soft-drink producer, the third-largest Chilean winery win·er·y n. pl. win·er·ies An establishment at which wine is made. Noun 1. winery - distillery where wine is made wine maker and the largest Chilean mineral water producer. "CCU is a great company with a strong business base, and we have tremendous respect for their management team," said August A. Busch III, chairman of the board and president of Anheuser-Busch Cos. Inc. "They have been excellent partners with us in Argentina." The investment is consistent with Anheuser-Busch's international growth strategy to develop its business in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . The South American beer market is attractive as a large market with 117 million barrels (137 million hectoliters) consumed annually and strong growth at 4 percent annually for the past five years. Improved disposable income disposable income Portion of an individual's income over which the recipient has complete discretion. To assess disposable income, it is necessary to determine total income, including not only wages and salaries, interest and dividend payments, and business profits, but also and economic fundamentals are expected to enhance future growth in this region, which has relatively low annual per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. beer consumption at 41 liters compared to the U.S. market at 87 liters. Anheuser-Busch is the largest brewer in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and the world. In addition to selling beer in Argentina and Chile, it has beer sales in more than 80 countries, including eight countries in South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , where the Budweiser brand has strong appeal. In 1999, Anheuser-Busch sold 102.9 million barrels (120.7 million hectoliters) of beer worldwide. Anheuser-Busch holds 10 percent share of the world beer market, including approximately 15 million barrels (18 million hectoliters) of equity volume through partnerships with brewers in other countries. This includes primarily a 50 percent ownership interest in Mexico's largest brewer, Grupo Modelo Grupo Modelo is a large brewery in Mexico. It maintains a large part of the Mexican beer export market and produces top-selling imported beer in the United Kingdom, United States and Canada. , brewer of Corona. SOURCE: Anheuser-Busch Companies |
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