Anheuser-Busch Inbev (BUD) has announced the terms of financing for its $104 billion acquisition of SABMiller for $68 per share (it works out to 44 pounds per share on the London Stock Exchange.) Verizon Communications, which currently holds for the record for one-time corporate borrowing as a result of needing $49 billion to buy out a joint venture with Vodafone in 2013, is about to be surpassed by 3G’s current strategy to take on $70 billion in debt to complete the SABMiller transaction. About $55 billion of debt will come from bond offerings.
This debt binging is entirely predictable for those that have studied the history between the partners at 3G Capital. The origins trace back to 1989, when Jorge Paulo Lemann, Carlos Alberto, Sicupira, Marcel Hermann Telles, and Roberto Thompson Motta got their hands on Brahma, a declining Brazilian brewer that had the highest costs of any company doing … Read the rest of this article!