Anheuser-Busch takeover no immediate influence, Budvar says

Jul 14, 2008, 13:49 GMT

Prague - The 52-billion-dollar takeover of US brewer Anheuser-Busch by Belgium's beer giant InBev has no immediate influence on Czech brewer Budweiser Budvar and its trademarks, the state-owned brewer said Monday.

'The newly-formed entity will have to respect a status quo and court decisions made in favour of Budweiser Budvar,' Budvar's general manager Jiri Bocek said in a statement.

The US brewer's expansion to Europe has been blocked by nearly century-long legal disputes over the Budweiser trademark with the small Czech brewer.

The takeover however could significantly decrease Budvar's price in a future privatization that has been mulled by the centre-right government of Prime Minister Mirek Topolanek, an industry insider told Deutsche Presse-Agentur dpa.

Unlike Anheuser-Busch, which would have rushed to buy Budvar to solve the trademark trouble, the new company is not likely to pursue the Czech brewer at any cost, said the expert who wished his name not to published.

'The new owner has no reason to push Bud to Europe where it has many brands already. The new entity will be significantly less interested (in Budvar) and the Budvar price will be significantly lower,' he said.

The Czech Trade and Industry Minister Martin Riman had estimated Budvar's value at some 20 to 30 billion koruny (1.4 to 2 billion dollars), a price that is now 'beyond reality,' the expert said.

Analysts also say the new company may be less keen to wage the costly legal war against the Czech brewer.

Still, InBev may be interested in Budvar becoming a clear number two on the Czech market, ahead of Heineken, another potential suitor. Both companies hold some 15 per cent of the market.

The Czech market number one with a nearly 50-per-cent market share is South Africa's SAB Miller, the owner of the Pilsner Urquell brand.