AB-InBev might sell stake in US packaging unit

USA | AB-InBev is weighing the sale of its packaging business, which could be valued at between USD 5 billion and USD 6 billion, Reuters reported on 28 November 2019.

According to Reuters, AB-InBev is not eyeing a full disposal of the division, which is located in St Louis, and also makes packaging for other businesses. A partial sale could flush in USD 750 million, which could be used to pay down some of AB-InBev’s debt load, accumulated from the SABMiller transaction.

There are risks to outsourcing such an essential part of AB-InBev’s business. It might expose AB-InBev to higher costs. By retaining a significant stake, AB-InBev could mitigate this risk.

The packaging assets were acquired in 2008 as part of the acquisition of US brewer Anheuser-Busch.