Interbrew (Belgium) and AmBev (Brazil) agree to form beer giant

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Interbrew and AmBev agree to form beer giant
By Adam Jones in London, Raymond Colitt in São Paulo, Raphael Minder in Brussels, and Neil Buckle
Published: March 3 2004 8:39 | Last Updated: March 3 2004 20:36

Interbrew of Belgium and AmBev of Brazil laid claim to the title of world's biggest brewer on Wednesday as they announced an alliance.

In a deal initially valued at €9.2bn, Interbrew, the maker of Stella Artois and Beck's, will take a majority stake in AmBev, the biggest brewer in Brazil, and rename itself InterbrewAmBev.

The complicated alliance hinges on an exchange of shares between Interbrew and AmBev's three controlling shareholders.

It comes after Luiz Inacio Lula da Silva, Brazil's left-wing president, regained investor confidence last year with unexpectedly orthodox economic policies. Uncertainty during the 2002 election campaign had put foreign investments in Brazil on hold.

Victório de Marchi, AmBev co-chairman, said: "This operation was only possible because of the credibility Brazil has obtained with economic, social and institutional stability."