Merger of Worlds Two Largest Beer Companies Could Change the Beverage Industry Worldwide

Published Date : Sep 24, 2015

The future inhabitants of the bright, blue marble may not have to worry regarding being in the Pepsi or Coke camp. Or if they are in the Bud camp or Miller. The fact is that hydration seeker in future, may not even have to think about what to pour in their space-chrome gobs at all. 

The suggestion is not about what are descendants would be guzzling Soylent, better known as the old Silicon Valley standby. However, an unparalleled corporate merger is expected to raise questions about the possible effects of such a merger on the whole industry.

The two largest beer companies in the world, Anheuser Busch InBev and SABMiller, are working towards a merger, the result of which is likely to be equivalent to Conglomo. If the deal happens and Anheuser –Busch buys Miller, the new brewery company is slated to have a US$275 billion of market cap. Analysts say that the sum is big enough to buy Pepsi or Coca Cola.

The deal would not only tear apart the traditional divide that exists between alcoholic and soft beverages in the country, it may also drive beverages prices to its highest. As such, competition in the market would be history. Due to the proposed merger, several Democrats in Congress are unhappy, with talk of antitrust issues cropping in the Capital.

As the Vermont state senator and the Presidential candidate commented, the proposed merger is concerning to him, and it should be a concern to the American people as well who believe in a competitive economy.

In addition, several other congressman agree to the concern and are hoping that the Department of Justice and other regulators would work to call off the deal.