Harbin and InBev were definitely the big ones but they now own over 50% of Grupo Modelo, brewer of Corona Extra; and have purchased large stakes in Grolsch, Tsingtao Brewery Co., and Compania Cervecerias Unidas (Chile).
I think AB took a 50% stake in an Indian brewer last year too, but I can't recall the name.
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Great post from STLToday:
I also agree with Dave, what a pessimistic town. I think for the first time in a very LONG time our local leaders, especially our city leaders, are making positive moves to make St. Louis a competitve region again. As a small business owner and long time resident of St. Charles I NEVER would have expected 5 years ago that I would be looking to move my business and family into the city. But that is what we are doing and we are excited about being apart of what I believe is a city and region on the right tract. And for the constant naysayers with the ‘they’ should do this or ‘they’ need to do that. Take some ownership in your region. If you think they ‘need’ to get more business to move downtown, then move your business downtown. There are incentives that more than compensate for the 1% city tax, it is centrally located in the region and you could be a part of what I believe is an exciting time to be a St. Louisian. And the jury is still out on what the AGE buyout means for St. Louis region. It may be good, it may be bad. Huge mergers and takeovers happen almost daily, that’s business now a days. It does say something positive to move the new headquarters to Saint Louis. Hopefully we will win on this one.
We lose a regional brokerage and gain a dominating national one. We keep the talent and the headquarters.
This is not simply a loss by M&A.
Saint Louis has just landed the second-largest brokerage firm in the country.
Wow. Really, wow.
The HQ will be at One Jefferson Avenue in Saint Louis, not in VA or NC or even Manhattan. Central operations for the combined entity, much larger than the sum of its parts, will provide for an infusion of top talent (that will fill the recent additions) while increasing the prestige of the region.
Remember, Saint Louis is home to four major brokerage headquarters:
1. A.G. Edwards / Wachovia Securities.
2. Edward Jones.
3. Stifel Nicolaus / Legg Mason.
4. Scottrade.
Today’s merger further increases the strength of the local business cluster, increasing the city’s competencies in the industry, with new people coming in and a wider array of clients and distribution networks. The firm’s main competencies compliment each other, thus making the new Wachovia Securities more powerful than either company solo, and the Saint Louis metro area is stronger with this. Organic growth for AGE would not be able to produce this opportunity for the firm, and AGE was smart to make the deal (doubtful WB would’ve pursued a stock buyout or non-traditional raiding).
Would it have been better for our collective egos if AGE bought out WB?
How would we feel if that happened and the new HQ was in Richmond, VA?
It always hits a little when we watch change like this. However, considering AGE has been a major buyout target since 2000/01, this is as good a deal as we could’ve hoped for. Saint Louis is lucky MWD didn’t buy the company in April 2001 and shuttered much of the local operations, moving talent out of the area like BofA Trust did.
$1.1 Trillion AUM.
15,000 Financial Advisors.
Second largest brokerage operations in the world.
Thanks MattnSTL for posting that first comment. I almost missed it. I agree 100% with the author. 1000%. He/She basically echoed some of what I've written here.
When considering the deal, this is really WOW for St. Louis. I think it is even bigger than the Macy’s Midwest and almost as big as the Boeing Integrated Defense Systems/Future Combat Systems deal.
Based on what we know so far, St. Louis should be happy.
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^
I kind of thought you wrote that after I initially read it!
I kind of thought you wrote that after I initially read it!
Oh, I see.
Naw. It wasn't me, but it is ironic.
I left that depressing dump (STLToday forums) a long time ago.
Naw. It wasn't me, but it is ironic.
I left that depressing dump (STLToday forums) a long time ago.
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Grover wrote: (maybe Wachovia could run a shuttle service from the US stop to the campus!)
Metro and Madison County Transit actually is planning a Jefferson Ave shuttle to serve MSD, Sigma Aldrich, and the future Wachovia Securites. The buses would connect to Civic Center.
Arch City wrote:I wondered the same thing. The Edwards family is still involved with the company so I wouldn't doubt it.
This is inaccurate, or at best grossly overstated. Bagby's been the big cheese over there (both chairman and CEO) since 2001, and there are no Edwardses even listed among the insider rosters shown on financial tracking sites.
Grover wrote:(maybe Wachovia could run a shuttle service from the US stop to the campus!)
AG Edwards already runs a shuttle to the Union Station metro stop. As does Ameren.
BTW: someone on the inside gave me one interesting tidbit from the 10am company wide conference call. The Wachovia boss is moving his wife and four kids to St. Louis this summer.
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Cool and COOL. These guys (and gals) are going to LOVE the STL!
According to David Nicklaus, Wachovia also likes the airport. Less service than Charlotte, but way more than Richmond. Of course, Lambert is being compared to Richmond.
Link
Link
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buckethead wrote:Harbin and InBev were definitely the big ones but they now own over 50% of Grupo Modelo, brewer of Corona Extra; and have purchased large stakes in Grolsch, Tsingtao Brewery Co., and Compania Cervecerias Unidas (Chile).
AB did not purchase InBev or any part of it.
They own 50% of Grupo Modelo, unless something has changed very recently.
As far as I know, they own no part of Grolsch.
They own 27% of Tsingtao.
I believe AB sold their stake in CCU a few years ago.
^
A-B 10K wrote:International beer volume was 22.7 million barrels in 2006, compared with 20.8 million barrels in 2005. Anheuser-Busch International, Inc. (“ABII”), a wholly-owned subsidiary of the Company, oversees the marketing and sale of Budweiser and other brands outside the U.S., operates breweries in the United Kingdom (U.K.) and China, negotiates and administers license and contract brewing agreements on behalf of ABI with various foreign brewers, and negotiates and manages equity investments in foreign brewing partners.
Through Anheuser-Busch Europe Limited (“ABEL”), an indirect, wholly-owned subsidiary of the Company, certain ABI beer brands are marketed, distributed, and sold in more than thirty countries. In the U.K., ABEL sells Budweiser, Bud Ice, Bud Silver, Michelob, and Michelob ULTRA brands to selected on-premise accounts, brewers, wholesalers, and directly to off-premise accounts. Budweiser, Bud Ice, Bud Silver, Michelob, and Michelob ULTRA are brewed and packaged at the Stag Brewery near London, England which is managed and operated by ABEL. Harbin 1900 is imported into the U.K. by ABEL.
In China, the Company has a 97% equity interest in the Budweiser Wuhan International Brewing Company Limited (BWIB), a joint venture that owns and operates a brewery in Wuhan. The Company also operates the Budweiser (China) Sales Company, Ltd., an indirect wholly-owned subsidiary (“China Sales Co.”). BWIB and China Sales Co. are responsible for the marketing and distribution of the Company’s products in China. In China, BWIB and China Sales Co. currently produce and sell Budweiser, Bud Ice, Bud Ultra, Bud Genuine Draft, Harbin Ice and Harbin 1900. China Sales Co. also distributes other Harbin brands and will begin importing Grupo Modelo’s Corona brand in 2007.
The Company owns 100% of Harbin Brewery Group Limited. Harbin Brewery Group has thirteen breweries in northeast China. Harbin Brewery Group owns 100% of the entities operating nine of the breweries and a majority interest in the remaining four breweries. (See Item 2 of Part I—Properties.) The Harbin breweries sell beer under the Harbin and various other brand names.
In Canada, Budweiser, Bud Light, Busch and Busch Light are brewed and sold through a license agreement with Labatt Brewing Co. In Japan, Budweiser is brewed and sold through a license agreement with Kirin Brewery Company, Limited. A licensing agreement allows Guinness Ireland Limited to brew and sell Budweiser in the Republic of Ireland and Northern Ireland and Bud Light in the Republic of Ireland. Budweiser is also brewed under license and sold by brewers in Italy (Heineken Italia SpA), Spain (Sociedad Anonima Damm), Korea (Oriental Brewery Co., Ltd.) and Russia (Heineken). The Company had an agreement with Brasseries Kronenbourg for sale and distribution of Bud in France that terminated at the end of 2006. The Company owns a 7.9% stake in a subsidiary in Argentina of Compañía Cervecerías Unidas S.A. (‘‘CCU’’), the leading Chilean brewer, that brews and distributes Budweiser under license in Argentina and distributes Budweiser in Chile and Uruguay.
In Mexico, Budweiser, Bud Light, O’Doul’s and the 180 energy drink are imported and distributed by a wholly-owned subsidiary of Grupo Modelo (Cervezas Internacionales).
The Company also sells in over 60 other countries by exporting various brands including Budweiser and Bud Light from Company breweries in the U.S., U.K. and China and from its license partners’ breweries in Argentina, Italy and Spain.
The Company has a strategic investment agreement with Tsingtao Brewery Company Limited, the second largest brewer in China, and producer of the Tsingtao brand. Under the agreement, in 2003 and 2004, the Company invested $182 million in three Tsingtao convertible bonds. The investment in the bonds, combined with an existing 4.5% stake in Tsingtao common stock, brought Anheuser-Busch’s total investment to $211 million. In 2003, the Company converted the first bond, which increased the Company’s economic and voting stake in Tsingtao from 4.5% to 9.9%. In April 2005, the Company converted its two remaining Tsingtao convertible bonds into Series H common shares, thereby increasing the Company’s economic stake in Tsingtao from 9.9% to 27%, and its voting stake from 9.9% to 20%.
The Company owns a 35.12% direct interest in Grupo Modelo, S.A.B. de C.V., Mexico’s largest brewer, and a 23.25% direct interest in Diblo S.A. de C.V., Grupo Modelo’s operating subsidiary, providing the Company with, directly and indirectly, a 50.2% interest in Diblo. However, the Company does not have voting or other control of either Grupo Modelo or Diblo. Additional information is contained in Note 2, “International Equity Investments,” on page 50 of the 2006 Annual Report to Shareholders, which note is hereby incorporated by reference.
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Mayor Slay just chimed in from his website. Repeated a lot of what we wrote.
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The Central Scrutinizer wrote:
AB did not purchase InBev or any part of it.
They own 50% of Grupo Modelo, unless something has changed very recently.
As far as I know, they own no part of Grolsch.
They own 27% of Tsingtao.
I believe AB sold their stake in CCU a few years ago.
Sorry, I was referring to buying Rolling Rock from InBev, not purchasing InBev. That would probably have too many anti-trust hurdles to clear.
AB bought the US distribution rights for brands owned by Dutch brewer Royal Grolsch in 2006. All the new Grolsch advertising you see (I think there is a new billboard up when you cross the MLK now) was done by AB's ad agencies.
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bonwich wrote:^
A-B 10K wrote:International beer volume...blah...blah...blah...
Oh sure, any idiot could look it up. I was doing it from memory!
buckethead wrote:The Central Scrutinizer wrote:
AB did not purchase InBev or any part of it.
They own 50% of Grupo Modelo, unless something has changed very recently.
As far as I know, they own no part of Grolsch.
They own 27% of Tsingtao.
I believe AB sold their stake in CCU a few years ago.
Sorry, I was referring to buying Rolling Rock from InBev, not purchasing InBev. That would probably have too many anti-trust hurdles to clear.
AB bought the US distribution rights for brands owned by Dutch brewer Royal Grolsch in 2006. All the new Grolsch advertising you see (I think there is a new billboard up when you cross the MLK now) was done by AB's ad agencies.
Correct and correct. But of course, distribution rights are very different than ownership!
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MattnSTL wrote:That's great and all, but this thread isn't about AB.
That is true. But AB was given as a comparative example, which I felt was worth commenting on. Apparently others agreed.
So now we will all go back to AGE & WS and never mention AB again.
I know that Bagby - a Kansas City-area native - has been the big honcho over at AG Edwards. I've known this since Ben III retired. And Bagby, according to reports I've read, is very close to the Edwardses.bonwich wrote:This is inaccurate, or at best grossly overstated. Bagby's been the big cheese over there (both chairman and CEO) since 2001, and there are no Edwardses even listed among the insider rosters shown on financial tracking sites.
Also, Ben IV has held a number of positions within the company - including vice chairman. And you better believe that they still have some influence over that company even as shareholders.
Come on, now.
Gotta love how the P-D will give a rundown of companies lost through merger and acquisition every time a local company is bought out, but they never give a rundown of companies that have moved or relocated to the area.
At least I've never seen such a list.
At least I've never seen such a list.
Today, the Wall Street Journal wrote:St. Louis In The Familiar Spot Of Losing A Headquarters
DOW JONES NEWSWIRES
May 31, 2007 2:30 p.m.
By Desiree J. Hanford
Of DOW JONES NEWSWIRES
With the announcement that A.G. Edwards Inc. (AGE) is being acquired by Wachovia Corp. (WB), the St. Louis area finds itself in the all-too-familiar situation of losing another corporate headquarters.
The two regional brokerages announced the $6.8 billion deal Thursday, saying the combined retail brokerage organization will be based in A.G. Edwards' hometown of St. Louis. The other businesses, however, including research and investment banking, will be consolidated into Wachovia's existing lines of business. The acquisitions will make Wachovia, which is located in Charlotte, the second-largest retail brokerage in the U.S.
There are many familiar names that call St. Louis home, including Anheuser-Busch Cos. (BUD), Monsanto Co. (MON), Emerson Electric Co. (EMR) and Enterprise Rent-A-Car. The metropolitan area is the headquarters for 20 Fortune 1000 companies, including eight that are in the Fortune 500, according to the St. Louis Regional Chamber & Growth Association.
But St. Louis has also lost its fair share of headquarters. Earlier this decade, Ralston Purina Group was purchased by Nestle (Z.NES) and Trans World Airlines Inc. was acquired by American Airlines parent AMR Corp. (AMR). May Department Stores Co. was purchased by Federated Department Stores Inc. (FD) in 2005. Perhaps the biggest blow to the region was McDonnell Douglas becoming part of Boeing Corp. (BA) in 1997.
We will assume you don't find the Wall Street Journal to be a good newspaper, either.
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We will assume you don't find the Wall Street Journal to be a good newspaper, either.
I do think the WSJ missed the story as well.