Anheuser-Busch Cos. LLC said Aug. 23 that it will not make a qualifying offer to purchase the remaining shares of Portland, Ore.-based beer company Craft Brew Alliance Inc., in which it has a 31.3% stake.
The Anheuser-Busch InBev SA unit was expected to make the offer under an international distribution agreement that both companies entered in 2016.
Anheuser-Busch, which makes beer brands like Budweiser, Stella Artois and Michelob Ultra, will instead give Craft Brew Alliance a $20 million incentive payment in lieu of a qualifying offer.
"While disappointing, with this decision made, management can turn its attention to refining strategic alternatives to maximize shareholder value," Craft Brew Alliance CEO Andy Thomas said in a statement. "Looking to the future, we are optimistic that our healthy balance sheet, bolstered by the $20 million payment, and strategic investments in innovation and increased brand awareness will enable us to deliver long-term shareholder value."
Meanwhile, Anheuser-Busch's Brewers Collective President Marcelo Michalis said in a separate statement: "While we are not making an offer to purchase the remaining shares of CBA, our existing commercial partnership with CBA continues to be a key complement to our industry-leading craft portfolio and we look forward to working together for many years to come."
Craft Brew Alliance noted that its master distribution agreement will stay intact through 2028 and its existing contract brewing agreement and international distribution agreement will also remain intact through 2026.
