Brazilian PE firm 3G Capital eyes SAB Miller
Brazilian private equity (PE) major 3G Capital is mulling over a possible buyout of SAB Miller, maker of Miller, through its AnheuserBusch InBev, maker of Budweiser. Paving way for a major consolidation in the beer industry as the world's largest brewer AnheuserBusch InBev is bidding for SAB Miller, the second largest brewer. If the deal is successful, it'll be one of the top-6 global corporate takeovers in the history.
3G Capital is aggressively implementing global expansion plan, for which it's raised huge funds possible takeovers in the international beer industry. The cash-rich 3G Capital is exploring several options of mergers and acquisitions in the near future.
Led by three billionaires -- Jorge Lemann, Carlos Sicupira and Marcel Telles -- 3G Capital began acquiring breweries with a small player in the beer industry in Rio de Janiero. And it's been constantly looking out for friendly takeover bids that add value to its assets.
3G Capital's journey to own the world's largest brewer St-Louis-based Anheuser-Busch started off in a humble way transforming into an aggressive buyout binge. The journey of 3G Capital in brewery sector began with a small brewery in Brazil to world's largest brewer AnheuserBush InBev. 3G Capital investor Jorge Lemann along with two other partners formed AmBev in 1999 by combining all the brewers they had acquired.
Ambev took over Interbrew, a Belgian brewer in 2004 and created InBev. Subsequently, InBev acquired Anheuser-Busch for $52billion in 2008. This is how it became AnheuserBusch InBev, the world's largest brewer. Now, AnheuserBusch InBev began the process of taking over the bid for SAB Miller.
Though 3G Capital is a PE firm, it doesn't raise money in the normal way as most of the private equity firms do. It prefers to get huge lots of money from the wealthiest families in the world. Lemann and his associates Carlos Alberto, Sicupira and Marcel have pooled up big lots of money from over three dozen super rich individuals and the most wealthiest families in the world.
The world's well-known fund manager William Ackman also recently invested in 3G Capital. Other major investors include Colombia's Santo Domingo family, tennis player Roger Federer from Switzerland and JAB Holdings, which handles Germany's REimann family assets.
The recent purchase of Heinz and Tim Hortons for $36bn was considered to be the second largest takeover in the global consumer sector and fifth largest in the retail sector since 2013. 3G Capital also works with world's well-known stock market personality Warren Buffett. His Berkshire Hathaway Inc has forged an alliance with 3G Capital.
Berkshire Hathaway has financed $3billion in 2013 for purchasing Tim Hortons by Burger King Worldwide Inc. 3G Capital holds 51 percent state in Restaurant Brands International Inc. Buffett is keen on working with 3G Capital in another friendly takeover.