Altria Group owns about 27% of SABMiller. Based on market cap stats as of September 21, that’s about 23% of Altria’s market value.
In the short-term, one of the negatives for ABI shareholders could also be a possible reduction in dividend payouts, following the deal with SABMiller.
ABI could leverage ~$50 billion through debt financing. As of June 30, its total debt was ~$51.5 billion, with a total-debt-to-total-assets ratio of ~35.9%.
ABI is a leading company in the consumer staples sector. It has had a strong record of integrating acquisitions and delivering synergies ahead of target.
Although BUD holds the number one market position, its volumes in North America have been in decline since 2012, largely due to the craft beer effect.
Combined, big beer giants ABI and SABMiller would have a market share of over 70% of the US market. Craft beer only represents about 11% of the market.
ABI has been one of the most active companies in the acquisition of other beer firms. The Belgium-based company itself came from a prior $52 billion deal.
The top five beer brewers accounted for nearly 52% of the total global sales volume in 2014. ABI is the leader worldwide with 20.8% of the market share.
Anheuser-Busch InBev has announced that it has intimated to SABMiller its intentions to make an offer to acquire the beer company.
General Mills recorded a $0.79 1Q16 diluted EPS. This beats the analyst estimate of $0.69. Analysts expect earnings to grow 6.46% on average annually.
In 1Q16, General Mills paid $34 million related to restructuring initiatives. The company expects to incur ~$71 million in other project-related costs.
The 1Q16 net sales for General Mills’ US Retail segment totaled $2.53 billion, up 4% from 1Q15. Pound volume contributed 1% of net sales growth.
General Mills’ total segment operating profit rose by 20% to $826 million. On a constant-currency basis, its total operating profit increased by 23%.
General Mills reported its 1Q16 earnings on September 22, 2015. Its stock had been following a rising trend this month but fell by 1.58% on September 18.
ConAgra’s Consumer Foods segment’s operating profit was $242 million versus 1Q15’s figure of $193 million—a 22% increase.
ConAgra Foods (CAG) reported in June this year that it planned to cease operations in the private label business. Discontinued operations posted a loss of $3.23 per diluted share this quarter.
Over the next five years, analysts are expecting ConAgra Foods’s earnings to grow at an average annual rate of 6.33%.
ConAgra Foods (CAG) recorded 1Q16 diluted earnings per share (EPS) from continuing operations at $0.38. This is in comparison to EPS of $0.22 for 1Q15.
Following the report of 1Q16 earnings, ConAgra Foods’s stock fell hard by 8%, closing at $39.04 on September 22.
In August, Coca-Cola (KO) bought a 30% stake in Suja Juice, a California-based manufacturer of organic juices that uses high-pressure processing to preserve nutrition and taste.