In a couple of paragraphs, support one of the two viewpoints below concerning the Anheuser Busch InBev merger.
View 1 - AB acted as a well-managed business that takes the actions necessary to remain competitive in a very competitive market. If AB had not approved the merger, its profits and stock price would have fallen, and investment capital would have fled the company. As difficult as the decision was, AB operates in a very competitive environment and owes its stockholders the best return it can provide.
View 2 - The decision to sell the company was both short-sighted and, ultimately, a bad business decision. Any short term benefits AB stockholders reaped from the merger will be more than offset by U.S. job losses, lower tax revenues for States and the U.S. Government, and damage to the U.S. communities in which the company operates. Employees whose employers are loyal to them during difficult times repay that loyalty to the company through hard work. Employees who view themselves as economic pawns to be added or discarded as needed will feel only a marginal commitment to the new AB and their work performance will reflect the negative opinion they hold of their employer.
Anheuser Busch merger with InBev was essential because it was an excellent opportunity for the shareholder of Anheuser Busch. The merged company becomes one of the five top consumer products company in the world. The merger will bring synergies estimated to be $1.5 billion yearly by 2011. In addition, these synergies will contribute to the earnings per share from 2010. The InBev has committed that all US breweries will remain open. Further, the wholesalers will continue to receive support from the company. The shareholders of Anheuser Busch will gain because the company will expand globally ...
Economic Viewpoint is discussed very comprehensively in this explanation