Asahi continues its spending spree with AB InBev purchases
Included in the deal are Tyskie, Kozel, and Pilsner...
Japanese brewery, Asahi, is to buy five of Anheuser-Busch InBev’s beer brands for 7.3 billion euros.
Included in the deal are Tyskie, Kozel, and Pilsner Urquell, making it Asahi’s biggest acquisition so far. Asahi also owns Peroni and Grolsch, bought from SABMiller earlier this year.
John Colley, a Professor of Practice as Warwick Business School and an expert on mega-mergers, offered the following expert comment:
"The fallout from the $106Bn AB InBev purchase of SABMiller continues with the disposal of SABMiller's Eastern European brands for $7.8Bn to Asahi; this takes Asahi's investment to over $10Bn following their $2.5Bn purchase of Grolsch and Peroni, also part of the fallout from the AB InBev deal.
"Asahi has become a major power in Europe's competitive brewing market from nothing in the space of a few months. There do remain opportunities for further growth in Eastern Europe, unlike the Western European beer market which is mature and under attack from craft beers, wine, cocktails and spirits.
"Alcohol consumption is falling in the west as health concerns prevail. In Eastern Europe, there is an opportunity for beer to continue displacing high levels of spirit consumption. Asahi is paying a high price for the remaining AB InBev assets, around 50 percent more than the market expected reflecting growth expectations.
"AB InBev has had to sell all the North American, European and Chinese brands and brewing capacity purchased as part of SAB Miller as competition authorities take a tougher line than expected.
"So far asset sales have recouped around $23Bn of the $106Bn paid. However far more than 20 percent of total SAB Miller earnings capacity has been disposed of, effectively increasing the price for the growth areas of Africa and South America.
"The deal has become very expensive, although it is likely the savings will be far more than the announced $1.4Bn."
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Ultium Cells LLC/Li-Cycle: Sustainable Battery Manufacturing
Ultium Cells LLC - a joint venture between General Motors and LG Energy Solutions - has announced its latest collaboration with Li-Cycle. Joining forces the two have set ambitions to expand recycling in North America, recycling up to 100% of the scrap materials in battery cell manufacturing
What is Ultium Cells LLC?
Announcing their partnership in December 2019, General Motors (GM) and LG Energy Solutions established Ultium Cells LLC with a mission to “ensure excellence of Battery Cell Manufacturing through implementation of best practices from each company to contribute [to the] expansion of a Zero Emission propulsion on a global scale.”
Who is Li-Cycle?
Founded in 2016, Li-Cycle leverages innovative solutions to address emerging and urgent challenges around the world.
As the use of Lithium-ion rechargeable batteries in automotive, industrial energy storage, and consumer electronic applications rises, Li-Cycle believes that “the world needs improved technology and supply chain innovations to better recycle these batteries, while also meeting the rapidly growing demand for critical and scarce battery-grade materials.”
Why are Ultium Cells LLC and Li-Cycle join forces?
By joining forces to expand the recycling of scrap materials in battery cell manufacturing in North America, the new recycling process will allow Ultium Cells LLC to recycle cobalt, nickel, lithium, graphite, copper, manganese and aluminum.
“95% of these materials can be used in the production of new batteries or for adjacent industries,” says GM, who explains that the new hydrometallurgical process emits 30% less greenhouse gases (GHGs) than traditional processes, minimising the environmental impact. Use of this process will begin later in the year (2021).
"Our combined efforts with Ultium Cells will be instrumental in redirecting battery manufacturing scrap from landfills and returning a substantial amount of valuable battery-grade materials back into the battery supply chain. This partnership is a critical step forward in advancing our proven lithium-ion resource recovery technology as a more sustainable alternative to mining, " said Ajay Kochhar, President, CEO and co-founder of Li-Cycle.
"GM's zero-waste initiative aims to divert more than 90% of its manufacturing waste from landfills and incineration globally by 2025. Now, we're going to work closely with Ultium Cells and Li-Cycle to help the industry get even better use out of the materials,” added Ken Morris, Vice President of Electric and Autonomous Vehicles, GM.
Since 2013, GM has recycled or reused 100% of the battery packs it has received from customers, with most current GM EVs repaired with refurbished packs.
"We strive to make more with less waste and energy expended. This is a crucial step in improving the sustainability of our components and manufacturing processes,” concluded Thomas Gallagher, Chief Operating Officer, Ultium Cells LLC.