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79-828: Anheuser-Busch InBev SA/NV ( Flemish pronunciation: [ˈɑnɦɔizər ˈbuɕ ˈɪmbɛf] ), commonly known as AB InBev , is a US-Belgian-Brazilian multinational drink and brewing company based in Leuven , Belgium and is the largest brewer in the world. In 2023, the company was ranked 72nd in the Forbes Global 2000 . Additionally, AB InBev has a global functional management office in New York City , and regional headquarters in São Paulo , London , St. Louis , Mexico City , Bremen , Johannesburg , and others. It has approximately 630 beer brands in 150 countries. AB InBev

158-766: A basis in a national ethos , being ultimate without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards . In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefits capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality , unemployment , and wage stagnation . Raymond Vernon presents

237-472: A bid of £70 billion, (US$ 107 billion when the deal closed), or £44 per share, for its largest rival, the South African company SABMiller , which if approved would give the company a third of the global market share for beer sales and a half of the global profit. The company had previously offered £38, £40, £42.15, £43.50 per share respectively, but each of these had been turned down. SABMiller accepted

316-508: A corporation invests in a country in which it is not domiciled, it is called foreign direct investment (FDI). Countries may place restrictions on direct investment; for example, China has historically required partnerships with local firms or special approval for certain types of investments by foreigners, although some of these restrictions were eased in 2019. Similarly, the United States Committee on Foreign Investment in

395-514: A family-owned business until December 2000. At this point it organized an initial public offering, becoming a publicly owned company trading on the Euronext stock exchange (Brussels, Belgium). AmBev (short for America Beverages, formally Companhia de Bebidas das Américas , Portuguese for "Beverages Company of the Americas") is a Brazilian beverages company formed in 1999 with the merger of

474-429: A free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services. To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to

553-726: A joint venture with Sun in Russia. In 2000, Interbrew acquired Bass and Whitbread in the UK. They then acquired a number of German breweries: Diebels and Beck's & Co. (founded 1873, the maker of the world's top selling German beer) in 2001, the Gilde Group in 2002, and Spaten in 2003. In 2002 Interbrew also acquired stakes in the K.K. Brewery and the Zhujiang Brewery, strengthening its position in China. Interbrew operated as

632-490: A million troops to help, and by February 1991, Iraqi forces were expelled from Kuwait. Due to the oil boycott from Kuwait and Iran, oil prices rose and quickly recovered. Saudi Arabia once again led OPEC, and thanks to assistance in defending Kuwait, new relations emerged between the USA and OPEC. Operation "Desert Storm" brought mutual dependence among the main oil producers. OPEC continued to influence global oil prices but recognized

711-601: A number of smaller-volume and specialty beers, nonalcoholic brews like Budweiser Prohibition which made its first appearance in Canadian markets in 2016, malt liquors (King Cobra and the Hurricane family), and flavored malt beverages (e.g., Tequiza ). Anheuser-Busch had been one of the largest theme park operators in the United States with ten parks throughout the United States. In October 2009, AB InBev announced

790-529: A retail strategy of selling 24 beers for $ 24, at the time the lowest legal price in Ontario. Lakeport used its low prices as the basis for its marketing and immediately began to improve its market share. Teresa Cascioli ascribed the success to Lakeport's willingness to take ownership of their discount beers, stating that "We are the only one at $ 24 plus deposit that actually puts our company name on it." One television advertisement featured Teresa Cascioli and

869-465: A shop steward of the Teamsters Local 938, representing the workers who brewed Lakeport, discussing how they hoped to make a good product at a reasonable price for their consumers. This "grassroots marketing approach" that focussed on the overall brewery rather than any individual brand was quite different from most beer marketing strategies of the time. The result was that Lakeport's share of

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948-613: A soft drinks business that has bottling contracts with PepsiCo through its subsidiary, Ambev . In December 2016, Coca-Cola Co. bought many of the former SABMiller's Coca-Cola operations, including those in Africa. As part of the agreements made with regulators before Anheuser-Busch InBev was allowed to acquire SABMiller, the company sold the Peroni, Meantime and Grolsch brands to Asahi on 13 October 2016. After acquiring SABMiller, Anheuser-Busch InBev SA/NV agreed on 21 December 2016 to sell

1027-532: Is based. InBev employed close to 89,000 people, running operations in over 30 countries across the Americas, Europe and Asia Pacific. In 2007, InBev realized 14.4 billion euro of revenue. In 2006 InBev increased to 91% its share of Cerveza Quilmes , the largest beer manufacturer in Argentina. In 2007 InBev bought Lakeport Brewing Company , the largest discount brewer in Canada. The Interbrew and AmBev merger

1106-410: Is often handled through international arbitration . The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in

1185-865: Is usually a large corporation incorporated in one country that produces or sells goods or services in various countries. Two common characteristics shared by MNCs are their large size and centrally controlled worldwide activities. MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial experience globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries and gain access to special R&D capabilities residing in advanced foreign countries. The problem of moral and legal constraints upon

1264-574: The Corona brand. This transaction was valued at US$ 20.1 billion. To satisfy US anti-trust demands, on 7 June 2013 AB InBev sold its Grupo Modelo’s US business, including Grupo Modelo’s brand naming rights and one of the breweries in Piedras Negras in Mexico, for approx. US$ 4.75 billion to Constellation Brands , a competitor of AB Inbev in some beverage sectors. On 1 April 2014, AB Inbev completed

1343-848: The Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include the Swedish Africa Company founded in 1649 and the Hudson's Bay Company founded in 1670. These early corporations engaged in international trade and exploration and set up trading posts. The Dutch government took over

1422-670: The 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from the Spanish government. Rio Tinto, now based in London and Melbourne , Australia, has made many acquisitions and expanded globally to mine aluminum , iron ore , copper , uranium , and diamonds . European mines in South Africa began opening in the late 19th century, producing gold and other minerals for

1501-551: The English language. Senior officials, although mostly still Swedish, all learned English and all major internal documents were in English, the lingua franca of multinational corporations. After the war, the number of businesses having at least one foreign country operation rose drastically from a few thousand to 78,411 in 2007. Meanwhile, 74% of parent companies are located in economically advanced countries. Developing and former communist countries such as China, India, and Brazil are

1580-575: The International Energy Agency (IEA), enabling states to coordinate policy, gather data, and monitor global oil reserves. In the 1970s, OPEC gradually nationalized the Seven Sisters. The Kingdom of Saudi Arabia, as the only largest world oil producer, could leverage this. However, Saudi Arabia opted for the correct approach and maintained consistent oil prices throughout the 1970s. In 1979, the "second oil shock" came from

1659-631: The Labatt brewery in London, Ontario . In reaction, the Teamsters Union Local 938 called on Hamilton to boycott Labatt products. Several offers to purchase the facilities and equipment surfaced, including one from Calgary -based Minhas Creek Brewing Company . InBev declined all offers, and completely gutted the building of all brewing equipment and infrastructure. The Lakeport brand is now owned by AB InBev , which still sells beer with

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1738-652: The Mexico (MEXBOL: ABI) and South Africa (JSE: ANH) stock exchanges and with American Depositary Receipts on the New York Stock Exchange (NYSE: BUD). SABMiller ceased trading on global stock markets and divested itself of its interests in the MillerCoors beer company to Molson Coors. The new AB InBev entity is the world's largest beer company. Estimated annual sales are US$ 55 billion and the company will have an estimated global market share of 28 percent, according to Euromonitor International. As per

1817-511: The Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States. Corporations can legally engage in tax avoidance through their choice of jurisdiction but must be careful to avoid illegal tax evasion . Corporations that are broadly active across

1896-558: The OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example: Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963,

1975-490: The Ontario beer market rose from less than 2% in 2003 to 11% in 2006. During this time, Lakeport beers were among the ten top selling beers in Ontario. Cascioli had bought out the other investors to gain full ownership of the brewery. When Lakeport was incorporated on April 27, 2005, Cascioli became CEO . However, her ownership was reduced to about 20%. On February 1, 2007 Labatt Brewery, owned by InBev , made an offer of CAD$ 201.4 million to purchase Lakeport. Cascioli, as

2054-464: The Third World colonies. That changed dramatically after 1945 as investors turned to industrialized countries and invested in manufacturing (especially high-tech electronics, chemicals, drugs, and vehicles) as well as trade. Sweden's leading manufacturing concern was SKF , a leading maker of bearings for machinery. In order to expand its international business, it decided in 1966 it needed to use

2133-636: The U.S. applies its corporate taxation "extraterritorially", which has motivated tax inversions to change the home state. By 2019, most OECD nations, with the notable exception of the U.S., had moved to territorial tax in which only revenue inside the border was taxed; however, these nations typically scrutinize foreign income with controlled foreign corporation (CFC) rules to avoid base erosion and profit shifting . In practice, even under an extraterritorial system, taxes may be deferred until remittance, with possible repatriation tax holidays , and subject to foreign tax credits . Countries generally cannot tax

2212-541: The United States sanctions against Iran ; European companies faced with the possibility of losing access to the U.S. market by trading with Iran. International investment agreements also facilitate direct investment between two countries, such as the North American Free Trade Agreement and most favored nation status. Raymond Vernon reported in 1977 that of the largest multinationals focused on manufacturing, 250 were headquartered in

2291-506: The United States scrutinizes foreign investments. In addition, corporations may be prohibited from various business transactions by international sanctions or domestic laws. For example, Chinese domestic corporations or citizens have limitations on their ability to make foreign investments outside China, in part to reduce capital outflow . Countries can impose extraterritorial sanctions on foreign corporations even for doing business with other foreign corporations, which occurred in 2019 with

2370-614: The United States as the largest consumer and guarantor of the existing oil security order. Since the Iraq War, OPEC has had only a minor influence on oil prices, but it has expanded to 11 members, accounting for about 40 percent of total global oil production, although this is a decline from nearly 50 percent in 1974. Oil has practically become a common commodity, leading to much more volatile prices. Most OPEC members are wealthy, and most remain dependent on oil revenues, which has serious consequences, such as when OPEC members were pressured by

2449-461: The United States from 2010. The USA became the leading oil producer, creating tension with OPEC. In 2014, Saudi Arabia increased production to push new American producers out of the market, leading to lower prices. OPEC then reduced production in 2016 to raise prices, further worsening relations with the United States. By 2012, only 7% of the world's known oil reserves were in countries that allowed private international companies free rein; 65% were in

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2528-576: The United States, 115 in Western Europe, 70 in Japan, and 20 in the rest of the world. The multinationals in banking numbered 20 headquartered in the United States, 13 in Europe, nine in Japan and three in Canada. Today multinationals can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile ; The Economist suggests that

2607-505: The United States, Coors is majority-owned by MillerCoors (a subsidiary of SABMiller) and minority-owned by Molson Coors, though internationally it's entirely owned by Molson Coors, and Miller is owned by SABMiller." The merger (AB InBev acquisition of SABMiller), closed on 10 October 2016. The new company is called Anheuser-Busch InBev SA/NV (AB InBev), based in Leuven, Belgium and listed on Euronext (Euronext: ABI), with secondary listings on

2686-766: The VOC in 1799, and during the 19th century, other governments increasingly took over private companies, most notably in British India. During the process of decolonization , the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company , dissolving in 1972. Mining of gold, silver, copper, and oil was a major activity early on and remains so today. International mining companies became prominent in Britain in

2765-507: The West to the post-colonial South and invest either in foreign expenditures or ostentatious economic development projects. After 1974, most of the money from OPEC members ceased as payments for goods and services or investments in Western industry. In February 1974, the first Washington Energy Conference was convened. The most significant contribution of this conference was the establishment of

2844-473: The agreement with the regulators, the former SABMiller sold to Molson Coors full ownership of the Miller brand portfolio outside of the U.S. and Puerto Rico for US$ 12 billion. Molson Coors also retained "the rights to all of the brands currently in the MillerCoors portfolio for the U.S. and Puerto Rico, including Redd's and import brands such as Peroni, Grolsch and Pilsner Urquell." The agreement made Molson Coors

2923-469: The behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that has emerged during the late twentieth century. Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week ,

3002-410: The bid in principle , but consummation of the deal required antitrust approval by regulatory agencies. In 2015, the U.S. Department of Justice (DOJ) had agreed to the deal only on the basis that SABMiller "spins off all its MillerCoors holdings in the U.S.—which include both Miller- and Coors-held brands—along with its Miller brands outside the U.S." The entire ownership situation was complicated: "In

3081-742: The collapse of the Shah's regime in Iran. Iran became a regional power due to oil money and American weapons. The Shah eventually abdicated and fled the country. This prompted a strike by thousands of Iranian oil workers, significantly reducing oil production in Iran. Saudi Arabia tried to cope with the crisis by increasing production, but oil prices still soared, leading to the "second oil shock." Saudi Arabia significantly reduced oil production, losing most of its revenues. In 1986, Riyadh changed course, and oil production in Saudi Arabia sharply increased, flooding

3160-654: The companies. This occurred in 1960. Prior to the 1973 oil crisis , the Seven Sisters controlled around 85 percent of the world's petroleum reserves . In the 1970s, most countries with large reserves nationalized their reserves that had been owned by major oil companies. Since then, industry dominance has shifted to the OPEC cartel and state-owned oil and gas companies, such as Saudi Aramco , Gazprom (Russia), China National Petroleum Corporation , National Iranian Oil Company , PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Malaysia). A unilateral increase in oil prices

3239-783: The company began a buyback of shares-it is planned to buy up to 20% of the issued share capital . The annual buyback program is up to $ 1 billion. The following is a diagram of AB InBev's major mergers and acquisitions and historical predecessors. Brouwerij Artois (Est 1366, Named Artois 1717 - Belgium) Piedboeuf Brewery (Est 1812 - Belgium) Labatt Brewing Company (Est 1847, Acq 1995 - Canada) Beck's & Co. (Est 1873, Acq 2001 - Germany) Lakeport Brewing Company (Est 1992, Acq 2007 - Canada) Companhia Antarctica Paulista (Est 1880 - Brazil) Companhia Cervejaria Brahma (Est 1886 - Brazil) Cervecería y Maltería Quilmes (Est 1890, Acq 2006 - Argentina) Multinational corporation Most of

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3318-510: The conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management , and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations, we are some quarter-century into an era of stateless corporations—corporations that meet

3397-643: The creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself. "Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as

3476-487: The current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were the British East India Company founded in 1600 and

3555-616: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Lakeport Brewing Company The Lakeport Brewing Company was a brewery located in Hamilton , Ontario , Canada. Although it started as a producer of premium beers, it later switched to cheap discount brands, using a strategy of selling its beer for "a buck a bottle". By 2006, it had become the largest discount brewer in Canada. In 2007, Lakeport

3634-644: The end of 2019, total liabilities amounted to US$ 95.5 billion. Net debt to normalized EBITDA decreased to 4.0×. Goodwill reached US$ 128.114 billion, which compares with revenues of US$ 52.329 billion in 2019. For this deleveraging, the dividend for 2018 in EUR was cut in half compared with 2017. On 8 August 2023 Anheuser-Busch sold off several brands to Tilray . These included Blue Point Brewing Company , Breckenridge Brewery , Shock Top , Redhook Ale Brewery , Widmer Brothers Brewery , 10 Barrel Brewing Company, Square Mile Cider Company, and HiBall Energy. In November 2023,

3713-640: The entity to be known as AB InBev-Efes. AB InBev owns 24 percent of Anadolu Efes from its SABMiller acquisition, with the joint venture being consolidated in Anadolu Efes books, whilst being treated as an equity investment by AB InBev. On 21 July 2017, Anheuser-Busch InBev continued its investment in the non-alcohol beverage sector with the purchase of energy drink company Hiball. In December 2018, Anheuser-Busch InBev partnered with cannabis producer Tilray to begin researching cannabis infused non-alcoholic beverages with Tilray subsidiary, High Park Company. At

3792-481: The firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs . Sanjaya Lall in 1974 proposed a spectrum of scholarly analysis of multinational corporations, from the political right to the left. He put the business school how-to-do-it writers at the extreme right, followed by the liberal laissez-faire economists, and the neoliberals (they remain right of center but do allow for occasional mistakes of

3871-587: The former SABMiller Ltd. business in Poland, the Czech Republic, Slovakia, Hungary and Romania to Asahi Breweries Group Holdings, Ltd. for US$ 7.8 billion. The deal includes popular brands such as Pilsner Urquell , Tyskie , Lech , Dreher and Ursus . In August 2017, the company announced the formation of a 50–50 joint venture with Anadolu Efes , by merging both of their operations in Russia-with

3950-416: The hands of state-owned companies that operated in one country and sold oil to multinationals such as BP, Shell, ExxonMobil and Chevron. Down through the 1930s, about 80% of the international investments by multinational corporations were concentrated in the primary sector, especially mining (especially oil) and agriculture (rubber, tobacco, sugar, palm oil , coffee, cocoa, and tropical fruits). Most went to

4029-611: The innovations H2OH! and Guarah. The subsidiary is listed on B3 , the São Paulo stock exchange, and on the New York Stock Exchange . In 2004, Interbrew and AmBev merged , creating InBev . While its core business is beer, the company also had a strong presence in the soft drink market in Latin America. It employed about 86,000 people and was headquartered in Leuven, Belgium, where Anheuser-Busch InBev

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4108-576: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by

4187-415: The internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies. International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm . The latter is also known as

4266-460: The largest recipients. However, 70% of foreign direct investment went into developed countries in the form of stocks and cash flows. The rise in the number of multinational companies could be due to a stable political environment that encourages cooperation, advances in technology that enable management of faraway regions, and favorable organizational development that encourages business expansion into other countries. A multinational corporation (MNC)

4345-502: The largest shareholder, stood to gain more than CAD$ 40 million, and she and the board of directors recommended the sale to Lakeport shareholders. The deal was subsequently approved. Just over three years later, on March 30, 2010, Labatt announced that in four weeks, the Lakeport Hamilton Brewery would close on April 30, 2010. All 143 brewery employees would be laid off and production of Lakeport beers would shift to

4424-474: The laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control". As of 1992 , the United States and most OECD countries have the donot legal authority to tax a domiciled parent corporation on its worldwide revenue, including subsidiaries. As of 2019 ,

4503-494: The market with cheap oil. This caused a worldwide drop in oil prices, hence the "third oil shock" or "counter-shock." However, this shock represented something much bigger—the end of OPEC's dominance and its control over oil prices. Iraqi President Saddam Hussein decided to attack Kuwait. The invasion sparked a crisis in the Middle East, prompting Saudi Arabia to request assistance from the United States. The United States sent

4582-480: The marketplace such as externalities). Moving to the left side of the line are nationalists, who prioritize national interests over corporate profits, then the "dependencia" school in Latin America that focuses on the evils of imperialism, and on the far left the Marxists. The range is so broad that scholarly consensus is hard to discern. Anti-corporate advocates criticize multinational corporations for being without

4661-414: The premium beers did not sell well; by 1999, Lakeport was in bankruptcy protection. AlphaCorp Holdings Ltd subsequently bought the brewery and hired Teresa Cascioli to manage it. To make the brewery profitable, Cascioli took on contract manufacturing work for other beverage brands and reworked the brewery operations. In 2002 Lakeport held only one percent of the market share in Ontario when it pioneered

4740-560: The price collapse in 1998–1999. The United States still maintains close relations with Saudi Arabia. In 2003, U.S. forces invaded Iraq with the aim of removing the dictatorship and gaining access to Iraqi oil reserves, giving the United States greater strategic importance from 2000 to 2008. During this period, there was a constant shortage of oil, but its consumption continued to rise, maintaining high prices and leading to concerns about "peak oil". From 2005 to 2012, there were advances in oil and gas extraction, leading to increased production in

4819-855: The re-acquisition of the Oriental Brewery (OB), which it had sold in July 2009. OB is the largest brewer in South Korea . Its CASS brand is the best-selling beer in South Korea. All beers produced by OB are brewed using rice. In 2013, AB InBev opened its Bud Analytics Lab in Research Park, University of Illinois at Urbana-Champaign , which develops data research and innovation to solve problems ranging from assortment optimization, social media, and market trends to large scale data initiatives. On 13 October 2015, Anheuser-Busch InBev made

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4898-611: The realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries. One of the first multinational business organizations, the East India Company , was established in 1601. After the East India Company came the Dutch East India Company , founded on March 20, 1603, which would become the largest company in the world for nearly 200 years. The main characteristics of multinational companies are: When

4977-582: The sale of its Busch Entertainment theme park division to The Blackstone Group for $ 2.7 billion. The company had been investigating a sale of Busch Entertainment since the merger with AB InBev. In 2012, AB InBev bought a 51% stake of Cervecería Nacional Dominicana , a beer producer in the Dominican Republic which was the largest in the Antilles and Central America. In 2013 the company bought Grupo Modelo , Mexico's leading brewer and owner of

5056-501: The strong influence of the United States on the global oil market. In 1959, companies lowered the price of oil due to a surplus in the market. This reduction dealt a significant blow to the finances of producers. Saudi oil minister Abdullah Tariki and Venezuela’s Juan Perez Alfonso entered into a secret agreement (the Mahdi Pact), promising that if the price of oil was lowered a second time, they would take collective action against

5135-614: The two biggest Brazilian brewers, Antarctica (founded in 1880) and Brahma (founded in 1886). The organization's headquarters are in São Paulo, Brazil. As an independent operator it's the largest beer company by market capitalization in Brazil and in the Southern hemisphere . Ambev operates in 18 countries in the Americas and its products include beers such as Antarctica, Bogotá Beer Company, Brahma , Bohemia, Stella Artois and soft drinks like Guaraná Antarctica , Soda Antarctica, Sukita and

5214-496: The world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902) was one of the few businessmen in the era who became Prime Minister (of South Africa 1890–1896). His mining enterprises included the British South Africa Company and De Beers . The latter company practically controlled the global diamond market from its base in southern Africa. In 1945, the United States

5293-573: The world without a concentration in one area have been called stateless or "transnational" (although "transnational corporation" is also used synonymously with "multinational corporation" ), but as of 1992, a corporation must be legally domiciled in a particular country and engage in other countries through foreign direct investment and the creation of foreign subsidiaries. Geographic diversification can be measured across various domains, including ownership and control, workforce, sales, and regulation and taxation. Multinational corporations may be subject to

5372-476: The world's largest brewer, creating one of the top five consumer products companies in the world. Under the terms of the merger agreement, all shares of Anheuser-Busch were acquired for US$ 70 per share in cash, for an aggregate of US$ 52 billion. Anheuser-Busch was established in 1852 in St. Louis, Missouri, US as Anheuser & Co. It is the largest brewing company in the United States and employs over 30,000 people. It

5451-611: The world's third-largest brewer. In Canada, Molson Coors regained the right to make and market Miller Genuine Draft and Miller Lite from the former SABMiller. After the formation of Anheuser Busch Inbev SA/NV (AB InBev), the Company owned 630 beer brands including Budweiser and Bud Light , Corona , Stella Artois , Beck's , Leffe , Hoegaarden , Quilmes , Victoria , Modelo Especial , Michelob Ultra , Sedrin, Klinskoye , Sibirskaya Korona , Chernigivske , Cass and Jupiler until some were spun off. Anheuser Busch Company also owns

5530-503: The worldwide revenue of a foreign subsidiary, and taxation is complicated by transfer pricing arrangements with parent corporations. For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements. Disputes between corporations in different nations

5609-438: Was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for the seven multinational companies that dominated the global petroleum industry from the mid-1940s to the mid-1970s. The nationalization of the Iranian oil industry in 1951 by Iranian Prime Minister Mohammad Mosaddegh and the subsequent boycott of Iranian oil by all companies had dramatic consequences for Iran and

5688-573: Was established by 1366 and the Piedboeuf brewery was established by 1812. Interbrew then acquired a number of local breweries in Belgium. By 1991, the second phase of targeted external growth began outside Belgium. The first transaction in this phase took place in Hungary, followed in 1995 by the acquisition of Labatt Brewing Company (founded 1847), the largest brewer in Canada, and then in 1999 by

5767-662: Was formed through InBev acquiring the American company Anheuser-Busch . Anheuser-Busch InBev SA/NV is a publicly listed company, with its primary listing on the Euronext Brussels. It has secondary listings on Mexico City Stock Exchange , Johannesburg Stock Exchange , and New York Stock Exchange . Interbrew was formed in 1987 from a merger of the two largest breweries in Belgium: Artois and Piedboeuf . The Artois brewery, previously known as Den Hoorn ,

5846-448: Was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but

5925-546: Was labeled as "the largest nonviolent transfer of wealth in human history." The OPEC sought immediate discussions regarding participation in national oil industries. Companies were not inclined to object as the price hike benefited both them and OPEC members. In 1980, the Seven Sisters were entirely displaced and replaced by national oil companies (NOCs). The rise in oil prices burdened developing countries with balance of payments deficits, leading to an energy crisis. OPEC members had to abandon their plan of redistributing wealth from

6004-703: Was taken over by InBev's Canadian subsidiary, Labatt . Three years later, InBev closed the Hamilton brewing plant, and shifted production of Lakeport beers to the Labatt plant in London, Ontario . Lakeport was founded by William (Bill) Sharpe in 1992 as a premium beer brewery. The brewery was located in a historical brewery building on Hamilton's port lands owned by the Hamilton Port Authority. Sharpe created and launched many new brands of premium beer, as well as negotiating contracts to brew beers for other brands such as President's Choice . However,

6083-486: Was the world's largest brewing company based on revenue , but third in brewing volume, before the acquisition by InBev announced 13 July 2008. The division operated 12 breweries in the United States and 17 others overseas. Anheuser-Busch's best-known beers included brands such as Budweiser , the Busch (originally known as Busch Bavarian Beer) and Michelob families, and Natural Light and Ice . The company also produced

6162-513: Was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore, the United States turned to foreign oil sources, which had a significant impact on the recovery of the West after World War II. Most of the world's oil was found in Latin America and the Middle East, particularly in the Arab states of the Persian Gulf. This increase in non-American production

6241-509: Was valued at $ 11.5 billion, and consolidated the top brands from Belgium, Canada, Germany and Brazil. The merger combined the third largest brewing company in the world (Interbrew) and fifth largest (Ambev) into the world's No.1 beermaker. Before the merger, Heineken International was in fourth place, SABMiller was in second place, and Anheuser-Busch had been the largest. In 2008, InBev acquired Anheuser-Busch , creating Anheuser-Busch InBev (AB InBev), expanding on InBev's previous status as

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