Rumors about AB InBev acquiring Coca-Cola or PepsiCo have floated around for years. While speculative, such a deal could make sense, especially given the recent consolidation trend in the beverage sector and AB InBev's increasing focus beyond alcohol.
People are drinking less beer, pushing major brewers to look for new opportunities.
AB InBev, the world’s largest beer company, has been expanding beyond beer over the past year, making minority investments and small acquisitions in cider and soft drinks.
But earlier rumors suggest an even bigger move into the non-alcoholic category could be possible, with PepsiCo and Coca-Cola at the top of the potential acquisitions list.
An acquisition of either wouldn’t come cheap.
Coca-Cola’s market cap is currently hovering around $195B, while PepsiCo’s equity is valued at $158B, as of 9/26/2018.
Is such a mega-acquisition possible?
We used the CB Insights platform to examine what a combination between AB InBev and one of the soft drink giants would look like, whether it could make sense, and how it would reshape the beverage industry.