Anheuser-Busch Won't Bid for Rest of Craft Brew Alliance

By Colin Kellaher

Anheuser-Busch InBev S.A. (BUD) on Friday said it won't make an offer to buy the nearly 70% of Craft Brew Alliance Inc. (BREW) it doesn't already own but said it will continue its distribution and brewing agreements with the craft brewing collective.

Anheuser-Busch, which holds a 31.3% stake in Craft Brew Alliance, will instead make a $20 million one-time incentive payment to the Portland, Ore., company.

Craft Brew Alliance called the Anheuser-Busch decision "disappointing," but it noted that the companies' master distribution agreement remains intact through 2028, while their contract brewing and international distribution agreements remain through 2026.

Shares of Craft Brew Alliance, which closed Thursday at $12.96, fell about 3.6% in premarket trading Friday.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

August 23, 2019 09:02 ET (13:02 GMT)

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