Missouri Governor Blunt Seeks FTC Review of Proposed Sale of Anheuser-Busch

June 16, 2008 -- JEFFERSON CITY – Missouri Governor Matt Blunt today requested the Federal Trade Commission (FTC) review the proposed sale of Anheuser-Busch to InBev to determine if it would prevent free competition by creating a near monopoly in the beer beverage market.

A Budweiser bottling plant: Photo by Todd J (CC)

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“I am deeply troubled by the recent attempt by InBev to purchase the St. Louis-based company, Anheuser-Busch,” Gov. Blunt wrote in a letter to the FTC Chairman William E. Kovacic. “In particular I am concerned that this sale would have destabilizing impacts on our nation and state’s long-term economic interests. I am opposed to this buyout and am asking you to conduct this review as quickly as possible.”

Gov. Blunt noted InBev’s takeover of the largest American brewer would result in more than half of the beer sold in the United States being controlled by a single company. Gov. Blunt also pointed out that if the sale goes through, the beer beverage market would soon be dominated by two companies, together with the parent ownership of Miller Brewing by London-based SABMiller, restraining effective competition and trade in the beer market.

The governor said he believes strongly that America’s economic system is best served by maintaining vigorous free competition among businesses.

For Missouri and the City of St. Louis, the InBev buyout holds a potentially significant economic impact. Anheuser-Busch provides more than 5,000 jobs for Missouri workers. Direct company operations in St. Louis have a $3.8 billion economic impact on the region and $5 billion total impact to Missouri’s economy. When considering the company’s domestic operations as a whole, Anheuser-Busch has contributed $36 billion to the U.S. Gross National Product.

“I am strongly opposed to the sale of Anheuser-Busch,” Gov. Blunt said. “Over its 150 years in business, Anheuser-Busch has become not only one of our state’s most recognizable businesses, but the brand name ‘Budweiser’ has become an iconic symbol of American culture to people around the world. Anheuser-Busch is a great Missouri company, a great employer, a great corporate citizen and the maker of great products that are responsibly enjoyed in Missouri and around the world.”

Last week Gov. Blunt directed the Department of Economic Development to explore every option and any opportunity we may have at the state level to help keep Anheuser-Busch in St. Louis, Missouri.

Source: Missouri Governor