UBS, the financial services company headquartered in Switzerland, released a 23-page report assessing the potential deal. UBS sees the acquisition as “strategically compelling,” calling it a “classic” ABI deal. The report charts a five-year compounded growth of 1.7 percent in the Mexican beer market and details some serious upside in market share and operating margins.
In the U.S., UBS feels that ABI would like be able to take pricing up for the Corona portfolio, creating a greater pricing umbrella for its domestic premium brands while driving significant core brand value. The deal would also be a win for AB wholesalers currently looking to ditch exclusivity agreements to take on the ever-growing landscape of craft brands driving some serious margins. UBS feels it could help “mitigate” the trend.
Read the complete report here.