🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

AB InBev starts search for long-time CEO Brito's successor: FT

Published 09/07/2020, 12:31 PM
Updated 09/07/2020, 04:16 PM
© Reuters. AB InBev CEO Brito presents the company's results in Leuven
ABI
-
SBMRF
-

(Reuters) - Budweiser beer maker Anheuser-Busch InBev (BR:ABI) has started searching for a replacement for its long-serving chief executive Carlos Brito, the Financial Times reported https://www.ft.com/content/101049df-27ee-4362-973e-b763a05dd7b6 on Monday.

The world's biggest brewer is considering external candidates to replace Brito, who has been its CEO for 16 years and has overseen a string of mergers that transformed two Brazilian and Belgium drink-makers into a global giant, the FT reported, citing people with knowledge of the matter.

AB InBev declined to comment on the FT report, which also said that the company is currently considering only one internal candidate, Michel Doukeris, who heads its North America-based Anheuser-Busch business.

Brito is involved with the board in the process and plans to step down at some point next year, the FT said, citing one person. It is also possible that Brito remains in charge for longer if a replacement is not found, it said, added that Brito was expected to join AB InBev's board after stepping down.

Bernstein Research said in a note that the timing of the leadership change made sense, with the COVID-19 crisis potentially abating and the company needing to shift focus to more internal growth after years of acquisition-led expansion.

It said it also made sense to look outside the company, but it was most likely that an internal candidate would prevail, with Doukeris the clear frontrunner.

AB InBev, which makes Stella Artois and Corona, is working with recruitment firm Spencer Stuart on the search, the FT said.

Brazilian-born Brito's biggest deal to date was the near-$100 billion takeover in 2016 of its nearest rival SABMiller (LON:SAB), whose business in Africa plugged a critical hole in the company's global footprint.

However, AB InBev's shares are currently trading 60% below their all-time high of 2015, partly due to concerns over the deal-related debt, which was at a net $87.4 billion at the end of June.

© Reuters. FILE PHOTO: AB InBev CEO Brito drinks a Stella Artois beer after presenting the company's results in Leuven

In response, the company has halved its final 2019 dividend and sold assets, including its Australian business to Japan's Asahi (T:2502).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.