The boards of both the St. Louis-based Anheuser-Busch and InBev have approved the all-cash deal, according to a joint statement released today (Monday).

Anheuser-Busch’s popular Budweiser and Bud Light beers will join InBev’s stable of beers that includes such well-known brand names as Stella Artois, Beck’s and Brahma. The resulting merger will produce the largest beermaker by volume, as the newly formed entity will surpass the current title-holder, the British-owned SAB Miller PLC (OTC: SBMRY).

“Together, Anheuser-Busch and InBev will be able to accomplish much more than each can on its own,” InBev Chief Executive Officer Carlos Brito, who will helm the new company, said in a joint statement. “We have been successful business partners for quite some time, and this is the natural next step for us in an increasingly competitive global environment.”

The takeover battle has been hotly contested for months in both the boardroom and the courtroom since InBev’s original $46 billion offer for Anheuser-Busch in May. Fierce opposition from the board, led by Chief Executive Officer August Busch IV, was finally overcome by InBev’s bid increase of 7.7% and the Belgian brewer’s agreement to name the newly formed global entity Anheuser-Busch InBev.

“This is about giving InBev a U.S. presence and this is the most effective way they can see to achieve that,” Grant Saligari, a beverage industry analyst at Commonwealth Securities Ltd. in Sydney, told Bloomberg News. “Consumers are very emotionally attached to their beers. A peaceful deal helps maintain that.”

Aneheuser-Busch and InBev Merger Just One of Many

This merger is the latest in a string of consolidations in the largely mature global beverage industry, as skyrocketing grain costs and softening economies have led struggling brewers to seek economies of scale. Two of the largest brewers, InBev and SAB Miller, are themselves creations of mergers that took place within the past 10 years, The New York Times reported.

In January, Carlsberg A/S and Heineken N.V. (HINKY) agreed to buy Scottish & Newcastle PLC for $15.4 billion. Late last year, British-owned SAB Miller PLC (OTC: SBMRY) and Canada’s Molson Coors Brewing Co. (TAP), agreed to merge their U.S. brewing operations.

Once InBev acquires Anheuser-Busch, it will leave The Boston Beer Co. Inc. (SAM), maker of the popular Samuel Adams beer brand, one of the last large domestic brewers still under U.S. ownership.

Source: InBev Finally Woos Anheuser-Busch with Higher Offer, Top Billing

On Sunday Anheuser-Busch (BUD) accepted a $49.9 billion takeover bid from Belgian-based InBev (INB). This consolidation in the market has sent brewery stocks rallying while US benchmark indexes tumble.

If the takeover goes through, Ian Davis  in The Growth Stock Wire says InBev will be the undisputed leader in the global market. This is not only a safe option during an economic downturn, but it’s also a great way of investing in emerging markets…

I’ll start today’s column with an incredible statistic… 48.

Forty-eight is how many out of every 100 domestic beers sold in America are made by Anheuser-Busch (NYSE:BUD).

This is why, along with companies like Nike (NYSE:NKE), Coca-Cola (NYSE:KO), and Harley-Davidson (NYSE:HOG), Anheuser-Busch is one of the most valuable brands ever created… And it’s why a Belgian brewery will most likely be the proud owner of the company.

On Friday, InBev (EBR:INB) – which makes Stella Artois and Beck’s – got a little closer to acquiring Anheuser-Busch. InBev is the world’s second-largest brewery by volume sold.

This consolidation talk has been bullish for the beer sector. As the following chart shows, an index of brewers is up 13% since February. The S&P 500, on the other hand, is down 10.8% over the same period.

Brewers Have Soared 13% Since February

This strength is a classic case of a “defensive” sector doing its job. Here’s the argument: In tough economic times, consumers tend to cut down on expensive motorcycles and boats, but they’ll keep drinking beer. (If they’re behind on their subprime loan payments, they may even increase their beer intake.)

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Anheuser-Busch isn’t solely responsible for the Brewery Index’s strong performance. Since February, Boston Beer (NYSE:SAM) is up 6.9%, Molson Coors Brewing (NYSE:TAP) is up 16.3%, and Constellation Brands (NYSE:STZ) is nearly flat at -1.4%. This is actually fantastic performance when the S&P 500 is cratering.

These shares are also doing well because speculators are betting more consolidation is in the works. Whether this consolidation happens or not, you should still consider a position in breweries. They’re simply one of the steadiest sectors in the market… especially during a recession.

Consider that Anheuser-Busch’s earnings grew from $1.33 per share in 2000 to $2.44 per share in 2003, during the dot-com crash. And here’s a look at how its stock and other major alcohol distributors performed.

Performance from March 2000 to March 2003 Boston Beer (SAM) 81.8% Molson Coors Brewing (TAP) 10.0% Constellation Brands (STZ) 93.3% S&P 500 -40.5%

As you can see, breweries are a solid recession investment. (They’re also a phenomenal way to invest in emerging markets. A single company often dominates an emerging-market’s beer industry.)

Brewery stocks are getting too much media attention these days (because of the Anheuser-Busch story)… so I won’t be surprised if they move lower over the next few weeks.

However, if the takeover goes through, InBev may be an interesting investment opportunity as the world’s undisputed king of beers. If you buy this stock – and others like it – you’re getting in on one of the world’s steadiest trends.

Source: A Simple Investment That Can Soar in a Recession

European beermaker InBev is the world’s largest brewer. Its stable of beers includes such well-known names as Stella Artois, Beck’s and Brahma.

“The two companies would represent an excellent geographic fit,” Wim Hoste, an analyst at KBC Securities, part of KBC Groep NV in Brussels, said in a telephone interview with Bloomberg News. “The black hole for InBev is the [United States]. Buying Anheuser-Busch would fill up the last major hole in their geographic portfolio.”

Should the two brewers merge, the resultant entity would be a globally focused player that sends out 350 million hectoliters of beer annually and generates approximately $20 billion in annual revenue, MarketWatch reported.

Analysts are already expecting opposition from Anheuser’s fiercely independent President and Chief Executive Officer August Busch IV. But if Busch refuses to commence friendly talks, InBev would then be prepared to go straight to key shareholders with its $65 per share bid, The Financial Times’ Alphaville blog reported, citing unnamed sources.

Management opposition isn’t the only problem that could derail this merger, Craig Hutson, an analyst at GimmeCredit.com, said in a MarketWatch report.

“The cultures are vastly different,” Hutson said. “Anheuser-Busch was founded by a family that has deep beer roots and a focus on building brands and treating its employees well. Inbev is a global amalgamation of acquisitions that is intently focused on reducing costs while incentivizing employees to drive higher profits.”

Hutson wrote that, while a deal would be “a good geographic and product fit, we believe there are too many impediments.”

Shares of Anheuser-Busch gained $4.03 each, or 7.66%, to close at $56.61 on Friday. The stock has traded between $45.55 and $58.00 in the past 52 weeks.

The proposed merger is the latest in a string of consolidations in the largely mature global beverage industry. In January, Carlsberg A/S and Heineken N.V. (HINKY) agreed to buy Scottish & Newcastle PLC for $15.4 billion. Late last year, British-owned SAB Miller PLC (OTC: SBMRY) and Canada’s Molson Coors Brewing Co. (TAP), agreed to merge their U.S. brewing operations.

If Anheuser-Busch is acquired by InBev, it will leave The Boston Beer Co. Inc. (SAM), maker of the popular Samuel Adams beer brand, as one of the last large domestic brewers that still has American ownership.

Source: Global Beer Titan InBev to Make $46 Billion Offer for No. 1 U.S