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Thread: Ambev and Heineken battling out who will end up with CND

  1. #21
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    Quote Originally Posted by windeguy View Post
    I suspect that most Americans would have said that Heineken was a German beer, but that is just my guess without taking a formal poll.
    This is getting really bad, first Belgian, now even German?

  2. #22
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    Quote Originally Posted by windeguy View Post
    I suspect that most Americans would have said that Heineken was a German beer, but that is just my guess without taking a formal poll.
    Guilty as charged.......




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  3. #23
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    This is getting really bad, first Belgian, now even German?

    Quote Originally Posted by AlterEgo View Post
    Guilty as charged.......
    With only a sampling of one, it isn't a valid poll, but I really do suspect most Americans think Heineken is German.
    We used to call it skunk pee.

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    Anheuser-Busch InBev has squeezed Heineken out of the Dominican Republic via its deal to gain control of the country's largest brewer, Ceverceria Nacional Dominicana (CND).

    A-B InBev said today (16 April) that its AmBev subsidiary will form a tie-up with CND's majority owner, Grupo León Jimenes, that will see the two companies merge their beer operations in the country. Although AmBev will initially buy a 41.76% interest in CND, at a cost of around US$1bn, this is set to creep above the all-important 50% mark after the brewer concurrently announced that it will buy Heineken's 9.3% stake in CND for US$237m.

    It's a move that enhances A-B InBev's sphere of influence across the Americas region, via a leading position in the Dominican Republic and via CND's Presidente brand, which is exported to the US. It also shows that the world's largest brewer was keener to consolidate its position in the Americas than risk another foray into Central & Eastern Europe with StarBev.

    That AmBev has managed to steal CND from under Heineken's nose, then, is something of a double win, securing a controlling stake in the Dominican Republic brewer at the same time as forcing Heineken out of the back door. Here is another Americas market in which Heineken will be second-best to a brewer either in the clutches of, or with strong ties to, A-B InBev. Mexico and Brazil head that list.

  5. #25
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    lots of americans think that dutch and deutsch are the same
    there is the confusion lol
    Manu

  6. #26
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    S&P upgrades Cerveceria Nacional Dominicana to B+; On Watch Pos

    -- CND's financial performance has improved, as shown in the company's deleveraging trend and the strengthening of its capital structure and profitability measures.
    -- AmBev and E. Leon Jimenes S.A., which owns 83.5% of CND, announced that they have entered into a transaction to form a strategic alliance through the integration of their businesses in the Caribbean.
    -- As a result, we have raised our rating on CND to 'B+' from 'B'. At the same time, we have placed the rating on CreditWatch with positive implications.
    -- We will resolve the CreditWatch after the closing of the transaction, expected during the second quarter of 2012 and which is subject to regulatory approvals.
    Rating Action
    On April 17, 2012, Standard & Poor's Ratings Services raised its rating on Dominican Republic-based beer and malt producer and distributor Cerveceria Nacional Dominicana S.A. (CND) to 'B+' from 'B'. At the same time, we placed the rating on CreditWatch with positive implications.
    Rationale
    The upgrade is based on CND's improved financial performance, as evidenced by the company's debt reduction, successful liability management, and strengthening of its liquidity position, which we now consider to be "adequate". Additionally, the CreditWatch placement follows the announcement of AmBev-Companhia de Bebidas das Americas (AmBev; A-/Stable/--) and E. Leon Jimenes SA (ELJ; not rated), which owns 83.5% of CND, that they have entered into a transaction to form a strategic alliance that will combine their businesses in the Caribbean.
    In the second-half of 2011 and during the first few months of 2012, CND strengthened its capital structure through the refinancing of a significant portion of its short-term debt. It also reduced debt and improved its EBITDA margins. At Dec. 31, 2011, CND posted total debt-to-EBITDA, funds from operations-to-total debt, and EBITDA interest coverage ratios of 2.5x, 28.4%, and 3.0x respectively, compared to 3.2x, 20.5%, and 2.6x in fiscal 2010. We expect these metrics will continue to improve slightly in following years. These could result from the company's focus on reducing debt, the cost and expense control programs to be realized during the next three years, and the expected operating efficiencies and synergies that would arise from the integration with AmBev's business in the Dominican Republic.
    Upon closing of the transaction, AmBev, through its subsidiary AmBev Brasil Bebidas S.A. (AmBevBrazil), and ELJ will be the shareholders of Tenedora CND S.A., a holding company which will own a 83.5% stake in CND and 100.0% of the shares of AmBev Dominicana SA ("AmBev Dominicana"). As a result, initially AmBev Brazil will possess an indirect interest of 41.76% in CND. The combined business operations include beer, malt and soft drinks in the Dominican Republic, Antigua, St. Vincent, and Dominica, as well as exports to 16 countries in the Caribbean to the U.S. and Europe. We expect the transaction to close during quarter ending June 30, 2012, subject to regulatory approvals. Through this transaction, and the acquisition of an additional stake in CND of 9.3% from Heineken NV, AmBev will hold a total indirect control ownership of approximately 51%. In our view, this strategic alliance will improve CND's business position. We believe CND's market share would increase, benefiting from AmBev's scale and management capabilities and experience, and a further expansion of its brands to other markets.
    The 'B+' rating on CND reflect the company's "aggressive" financial risk profile and "weak" business profile, the challenges of operating in the Dominican Republic, and exposure to the nation's economic cycles. It also incorporates our view of the business constraints associated with CND's geographic concentration and intense industry and regional competition, which could be mitigated with the strategic alliance with AmBev. Offsetting the weaknesses are the company's leading industry position in the Dominican Republic, its strong distribution capabilities in a fragmented retailer system, solid and longstanding brand recognition, the improving acceptance of CND's products in international markets, and its adequate liquidity.
    Liquidity
    We have revised CND's liquidity to adequate, from "less than adequate", as defined in our criteria. During the past months, CND substantially improved its debt-maturity profile through the refinancing of short-term liabilities and reducing debt. For 2012, sources of liquidity will likely include cash of Dominican peso (DOP) 1,611 million and funds from operations of about DOP3,730 million. Cash uses are likely to include DOP3,993 million in short-term debt maturities (from which approximately DOP2,612 million have been already paid or refinanced as of today), as well as approximately DOP2,317 million for working capital requirements, capital expenses, and dividend payments.
    We expect sources of liquidity to exceed uses by 1.3x for 2012 and 1.6x for 2013, and net sources to remain positive even with a 15%-20% decline in EBITDA. Given the company's financial metric improvement, its covenant headroom has widened. We anticipate this comfortable buffer to remain in the following two years with a cushion of more than 40%.
    CreditWatch
    Standard & Poor's expects to resolve the CreditWatch placement after the completion of the transaction, expected during the second quarter of 2012. We will also review CND's business and financial risk profiles post the transaction. We could raise the rating by one or two notches, depending on our evaluation of: the support level of AmBev to CND, the potential benefits that this transaction brings to CND's business profile, and the future financial strategy. If a further upgrade were to occur, it would mean that the rating on CND would be higher than the sovereign rating on Dominican Republic.

    TEXT-S&P upgrades Cerveceria Nacional Dominicana to B+; On Watch Pos | Reuters

  7. #27
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    Ambev also owns Brahma right?

  8. #28
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    Quote Originally Posted by Conchman View Post
    Ambev also owns Brahma right?
    As far as I know that is correct.

    Brazilian beer - Ambev, Schin, Brahma

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  10. #30
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    El pipo Brahama has just raised it's prices to the equivalent of Bohemia and Quisqueya isn't selling the grandes anymore. I knew this was going to happen. Talk about a mardito monopoly.

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