Coca-Cola Could Be the Next Big Target for AB InBev: Bernstein
(Bloomberg) -- Coca-Cola could be the next big target for ABI to create MegaBev, they also may look at acquiring the remaining Castel shares not held by SAB, beer business of Diageo and Efes, Bernstein says in note.
Says ABI recently mentioned a new incentive plan called Dream 2020, plan is for ABI to achieve revenues of $100b by 2020
ABI has $43.6b of rev.in 2015, allowing for disposals, PF MegaBrew would have ~$56b of consolidated rev. in 2015
Leaves a “gap” of $44b which would need to be bridged
With 2015 rev. of >$44b, Coke is big enough to help ABI bridge this gap to $100b in rev.
Buying whole of Diageo would fill this gap, but premium spirits less attractive then beer