Missouri governor asks for federal review of brewery takeover

Source: Agencies  |   2008-6-17  |     ONLINE EDITION

MISSOURI Gov. Matt Blunt sent a letter yesterday to the Federal Trade Commission, asking for a federal review of the proposed sale of Anheuser-Busch Cos. to Belgian brewer InBev.

Blunt's letter said he is concerned the sale could create a near monopoly in the US beer market by combining the two large brewers. He also said he's concerned the sale could damage the St. Louis and Missouri economies.

"In particular I am concerned that this sale would have destabilizing impacts on our nation and state's long-term economic interests. I am opposed to this buyout and am asking you to conduct this review as quickly as possible," Blunt, a Republican, said in the letter to FTC Chairman William E. Kovacic.

InBev, which makes Beck's and Stella Artois beers, made an offer this month to buy Anheuser-Busch for roughly US$46 billion. Anheuser-Busch, the largest US brewery and maker of Budweiser and Bud Light beers, has not yet officially responded to the offer.

Late Monday afternoon, Anheuser-Busch Chief Executive August Busch IV sent a brief letter to InBev Chief Executive Carlos Brito, declining to elaborate on media reports that Anheuser-Busch has begun negotiations for a potential combination with Mexico's Grupo Modelo SAB.

Should that deal take place, the resulting company might be too big for InBev to buy.

Busch was responding to a letter Brito sent him Sunday, warning against such a deal with Modelo. Brito said a combination could endanger the premium price it is willing to pay for Anheuser-Busch. Brito, said that his company's proposed offer was based on Anheuser-Busch's current assets, business and capital structure.

"With respect to certain of the matters referenced in your letter, it is Anheuser-Busch's policy not to confirm, deny, comment on or speculate on rumors," Busch said in his letter Monday.