Research On The Performance Of Anheuser-busch InBev’s M&A Strategy And Influencing Factors In China

Beer industry as an early opening industry in China, has been developed rapidlysince the reform and opening up. Beer production reached23.87million tons in2002,meanwhile China surpassed the U.S. became the world’s largest producer of beer for thefirst time. Nevertheless, due to the impact of China’s large rural population, thedifferences of climate conditions in different regions and long-term eating habits, percapita beer consumption of China is still low. Coupled with historical reasons, beermarket of China became regionalized and very fragmented. At the same time, in thewestern world which have higher standard of living, the beer market is lasting stagnation;while in the east, growth trend is showing overall. The giants of international beerindustry grasped the opportunity, and pour into the Chinese market.As one of the giants, AB-Inbev’s performance is particularly prominent. With morethan ten large and small M&A from1996to2012, AB-Inbev gained a firm footholdquickly in Chinese market. By2012, AB-Inbev has occupied13.4%of the market sharein the Chinese beer market, retaining its position as the Big Four beer Gangsters.In this paper, descriptive study method literature research, statistics, Quantityresearch method are used to relatively in-depth study strategic performance ofAB-Inbev’s M&A in China. First of all,the results of M&A strategic in China areevaluated from both financial performance and non-financial performance. Then bysystem analysis of M&A’s motivation, mode selection, target selection, and price-setting,it revealed the internal and external factors and impact of other aspects brought byAB-Inbev’s M&A in China. Finally, it made a summary of the successful experience ofAB-Inbev in China and the possible threat to other beer companies in China.Through the above analysis, it has been found that gaining market rapidly under theguidance of correct strategy, and maintained and developed markets successfully bysome effective methods such as focusing on the needs of consumers and achieving large–scale is AB-Inbev’s recipe for success,which precisely in contrast to producthomogeneity and blind price war in Chinese beer market. Alerting the potential threatposed by foreign beer companies, at the same time, China’s beer companies shouldrecognize their own problems and improve actively.