As August A. Busch IV, president and CEO, said his prepared statement, “Under the merger, the new company will expand Budweiser into new markets around the world, fulfilling the global ambitions my family has long dreamed about for this great American brand. I’m proud that the Budweiser tradition and our 150-year commitment to delivering the best brewed beer in the world will live on.”

At $70 per share for A-B, the deal is valued at $52 billion. It now only requires approval from antitrust authorities in the U.S., U.K. and China to close.

Wall Street has been hounding A-B for years that it was too U.S-centric. Compared to other countries, America one of the slowest growing beer markets in the world.

While A-B holds nearly 50% the U.S. market, the company barely registers in Argentina, Brazil, Russia and Eastern Europe, where In-Bev dominates. The worldwide market-share numbers tell the story loud and clear…

InBev 16%
SAB Miller 12%
Anheuser Busch 9%

A-B saw the handwriting on the wall, after InBev’s overtures earlier this year. Most people don’t know that A-B was already distributing InBev’s products here in the U.S. In fact, A-B grew its volume last year by 2.9% from the previous year largely due to InBev’s Stella Artois, Beck’s and Bass premium beers.

For years, A-B has been trying to get into emerging markets with only partial success. The company owns 50.2% of Modello, the Mexican brewer behind Corona and other major brands. The partnership turned hostile earlier this year when Grupo Modelo Chief Executive Carlos Fernandez resigned from A-B’s board of directors after a 15-year clash between the Busch and Fernandez families.

Meanwhile, InBev had already been big in Latin America where the company has roots. InBev was formed from the merger of Belgium’s Interbrew and Brazil’s AmBev in 2004.

InBev is a true multinational. Headquartered in Leuven, Belgium, it is the number-one beer company in the world. Its operations encompass more than 130 countries. About 60% of its profits come from Latin America, giving it crucial experience in emerging markets.

While InBev savors 12% of the Chinese beer market, A-B may have wasted precious time setting up shop in what some experts say is the world’s biggest beer market.

A-B had acquired Harbin, China’s fourth-largest brewer at the time in 2004. Now Harbin has dropped to fifth place.

It may have bungled another China opportunity as well. A-B formed a strategic alliance in China with Tsingtao in 2002. Under the terms of the deal, A-B took a 27% interest in Tsingtao. At the time, Tsingtao held a 13% share. Five years later, Tsingtao reaches 14% of the market, according to Reuters. Obviously, not a great move on the part of A-B.

What does this deal mean for investors?

InBev’s stock has been a slide over the past year 43.5% and currently trades at 31.07 Euros. It trades in on the Brussels exchange (BRU:INTB). The stock dropped 5.33% after the merger announcement.

We believe it’s too soon to jump into InBev now. Wait until the economy turns around and people start to celebrate.