Will the self-proclaimed king of beers be deposed? Shares in Anheuser-Busch, brewer of the famous Budweiser, have leapt 10 per cent in the past week on speculation that Belgium’s InBev is circling. The combination has long been fancied as the last available industry megadeal. Budweiser dominates the US market but lacks overseas exposure and, consequently, growth. InBev has been forged through a run of acquisitions around the globe, producing billions of euros worth of cost savings along the way. With no material North American footprint to speak of, antitrust issues should be no problem. Putting the two together would create the world’s largest brewer, producing a quarter of its beer. The problem will be persuading Anheuser shareholders, and chief executive August Busch IV, to give InBev’s cost-cutters free rein. A hefty premium will be required.

Post and read comments on this Lex