Stock Strategist: AB InBev Moves Closer to Sealing SABMiller Deal

[Morningstar Logo] [Company Site] [Company News] [Membership] [Portfolio] [Stocks] [Options] [Funds] [ETFs] [Markets] [Tools] [Personal Finance] [Discuss] Stock Strategist AB InBev Moves Closer to Sealing SABMiller Deal The asset swap with Ambev should be beneficial to moats and margins. [tab_bar] by Philip Gorham, CFA, FRM | 5/16/2016 5:30:00 PM Advertisement Free Issue - Morningstar's Fund Newsletter Get the authoritative source for mutual fund analysis, from the company that invented the field. Morningstar FundInvestor's mission is to hone your consideration set, delivering critical cost analysis, prospects for forward momentum, manager ability, and more. See for yourself why nobody in the investment world knows more about funds than Morningstar. [Download Now!] [Anheuser-Busch InBev] [BUD]/[ABI] answered one of the final outstanding questions regarding its acquisition of [SABMiller] [SBMRY]/[SAB] with the announcement that it will enter into an asset swap with [Ambev] [ABEV]/[ABEV3] to distribute SAB's Latin American assets. Subject to the closure of the transaction, AB InBev will transfer SAB's Panamanian business to Ambev; in exchange, Ambev will transfer to AB InBev its businesses in Colombia, Peru, and Ecuador. This distribution of the Latin American businesses across the two firms is something of a surprise to us. We had expected SABMiller's Latin American business to be transferred in its entirety to Ambev, with AB InBev taking a higher equity stake in Ambev. Nevertheless, we believe this asset swap is neutral to our valuation and our wide economic moat rating for AB InBev, which is ultimately left with monopolistic control over some growing and premiumizing Latin American markets. We are reiterating our $126 and EUR 111 fair value estimates for AB InBev's ADRs and ordinary shares, respectively, as well as our $5 and BRL 20 fair value estimates for Ambev. To read more, click [here]. Sponsored Links [Buy a Link Now] New: ETF Managed Portfolios Center On [MorningstarAdvisor.com]: Tap into the industry's best source of information on ETF strategies for financial advisors. See key performance data, screen for specific strategy attributes, and learn more about this fast-growing area of the investment marketplace. [Click to get started]. Free Issue | Morningstar's Stock Newsletter >> Morningstar StockInvestor is celebrating more than 10 successful years of high-quality stock investing. Its two real-money portfolios have outperformed the S&P 500 since 2001. [Get new ideas for the core of your stock portfolio]. Search Most Recent Articles [Can Anything Stop Vanguard?] [Hollywood Fibs About Wall Street] [A Story of 7 Fund Upgrades] Latest Analyst Reports [Nissan Motor] [Crescent Point Energy] [Arctic Cat] [Genesee & Wyoming] [Symantec] ABOUT OUR EMAIL TO UNSUBSCRIBE this email address to the Stock Strategist newsletter, please click "reply" and then click "send." This will unsubscribe only this email address to this specific newsletter. All subscription changes will take effect within one business day. Replies are not read by individuals, so please do not use this for queries about Morningstar.com. If you have questions about Morningstar.com or your membership, send a note to [joe@morningstar.com]. ABOUT OUR PRIVACY POLICY Please [click here] to learn about Morningstar's privacy policy. (c) Copyright 2016. Morningstar, Inc. 22 West Washington Chicago, Illinois, 60602 All rights reserved.