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AB InBev to Repurchase Minority Stake in U.S. Metal Container Plants for $3 Billion
AB InBev has announced its plans to buy back a minority stake in its U.S. metal container plants for approximately $3 billion. The Bud Light maker is reacquiring the 49.9% stake from a group of institutional investors led by Apollo Global Management, at a price similar to what it was sold for in 2020. The deal is expected to close in the first quarter.
The metal container plant operations consist of seven facilities across six states and are considered a strategic component of AB InBev’s business, ensuring quality, cost efficiency, speed of innovation, and supply security for its brands.
Strategic Move by AB InBev
When AB InBev initially offloaded minority ownership of its metal container plants, it retained the right to repurchase the stake on the fifth anniversary of the transaction. The decision to buy back the stake in 2026 comes as the company invests heavily in U.S. manufacturing operations and looks to scale newer brands like Phorm Energy.
Full ownership of the metal can business could prove beneficial for AB InBev, especially as metal tariffs increase costs and pose challenges for beverage companies. With a focus on can-focused beverages beyond beer, such as energy drinks, owning the entire operations could help secure the supply chain.
Commitment to Domestic Manufacturing
AB InBev has made significant commitments to boost domestic manufacturing, with a recent $300 million investment in upgrading packaging and brewing equipment in Los Angeles. Similar projects have been announced in St. Louis and Baldwinsville, New York. However, part of this strategy has also involved shutting down breweries to streamline operations, including facilities in California and New Hampshire.