It’s clear…The power of the strong euro is here
Written by A Forex View From Afar on Sunday, June 22, 2008Back to www.thelfb.com
The Euro: the single currency of 15 states that had dominated the financial landscape lately, leading the pack of dollar sellers, and appreciating in value by nearly 17% from one year ago.
Well, despite destroying the entire export industry, a strong currency has some advantages too. One of them could be cheaper vacations, meaning more Europeans in NY with superior buying power. We are now starting to see the buying power of the strong euro, and I’m not referring to French and German tourist buying more souvenirs. I’m mostly referring to buying a whole factory; our case Anheuser-Busch by the Belgian’s from InBev.
Budweiser, an American institution, got a $46 billion bid from InBev, a Belgian-Brazilian company. This is pretty big news, corporate shopping at a time when it’s said consumer demand will slow down.
It seems the beer-drinking community isn’t too happy about a US icon falling into foreigner’s hand. The sentimental patriotism is as strong, and pressure will rise if the merger is approved by the board. For the record, it doesn’t seem to matter that U.S. companies have ramifications all around the world, especially in Europe. All it matters is that U.S. iconic companies remain the U.S. The opposite side of the coin is sometimes a little tarnished.
Adolphus A. Busch IV, in a letter to the company’s board seems to agree with the takeover, as long the following conditions are accepted:
* Budweiser will be the global flagship brand
* The company will be named to reflect the Anheuser-Busch heritage
* St. Louis will be the North American headquarters
* Ongoing commitment to our wholesalers, consumers and the communities in which we operate
Full text can be found here
To me, it’s pretty clear that the deal is almost done, but will the consumers be able to look past their preconceived ideas? The beer will remain the same, but its owner will have changed. It’s not that hard, but it may change the flavor.
If you really want to see someone who has too much time and too few neurons to comprehend capitalism see this:
http://saveab.com/
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