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

• Bank of America Corp. (BAC) announced yesterday (Tuesday) that it had completed its purchase of Countrywide Financial Corp. (CFC). The all-stock deal was initially announced in January. Bank of America expects to eliminate 7,500 jobs now that the acquisition is complete, MarketWatch reported.

• The Institute for Supply Management’s index of manufacturing activity had a 0.6 gain to 50.2 in June, the first measurement since January that showed the manufacturing sector was expanding. “While it may be too soon to say that manufacturing has begun to start growing again, it is possible that a bottom is being reached,” Joel Naroff, president and chief economist of Naroff Economic Advisors, said in a note to clients yesterday (Tuesday).

• Moody’s Corp. (MCO) announced yesterday (Tuesday) that staff in its Moody’s Investor Service unit, which assigns credit ratings to various types of investment vehicles, had breached certain rules in assigning ratings to European constant proportion debt obligations (CPDO), Bloomberg News reported. A computer glitch was initially responsible for assigning the highest rating to CPDO debt in May, however, certain staff did engage in “conduct contrary to Moody’s code of professional conduct,” the ratings company said.

• Hong Kong’s stock, forex and debt markets were closed yesterday (Tuesday) to mark the anniversary of the July 1 handover of the territory to China from Britain, Reuters reported. Hong Kong’s markets will reopen today (Wednesday).

• Construction spending dropped 0.4% in May, the Commerce Department reported yesterday (Tuesday). It was the 11th decline in the past year, as a lack of demand in residential areas continued to offset relative strength elsewhere. Residential construction dropped 1.6% in May, the 25th decline out of the past 26 months, The Associated Press reported.

• Constellation Brands Inc. (STZ) said yesterday (Tuesday) that its fiscal first-quarter profit jumped 50% boosted by strong sales of newer wine brands such as Clos du Bois and Wild Horse, The Associated Press reported. The results beat Wall Street expectations, and its shares rose nearly 6%.

• Beginning July 11, iPhones will go on sale for $199 for the model with 8 gigabytes of storage and $299 for the 16-gigabyte version. These prices apply to customers signing up for a two-year AT&T contract. However, those who don’t want to be locked into such a contract will be able to buy the iPhone for $599 or $699 as long as they sign up for some kind of AT&T wireless subscription, Reuters reported.

• The foreign staff of BP PLC’s joint venture in Russia will be required to leave the country this month, some of them permanently, because their work permits were not renewed, the International Herald Tribune reported. BP is struggling to maintain control over TNK-BP, which is unraveling under pressure from its Russian partners and the Russian government, who are seeking to usurp complete control over the project.

Source: Global Investing Roundups Wednesday, July 2nd, 2008