Brazilian companies are on fire…
Ambev, the Brazilian brewer, has agreed to pay $1.24bn for Cervecería Nacional Dominicana (CND), the Dominican Republic’s biggest brewer, days after Dominican media said CND was about to be bought by Heineken of the Netherlands.
The deal puts Ambev in control of the Presidente beer brand and gives it access to CND’s markets in the Caribbean, the US and Europe. AB InBev (AmBev’s parent company), with brands including Budweiser and Stella Artois, said the deal will create the leading beverage company in the Caribbean region with businesses in beer, malt and soft drinks. It will have operations in the Dominican Republic, Antigua, St Vincent and Dominica. The deal is expected to close in the second quarter of 2012 and to add to earnings in the first year of operations.
AB InBev already has extensive operations in North and South America and, according to Reuters, controls nearly 50% of the beer market in the United States and almost 70% of the market in Brazil.