Actionable news
0
All posts from Actionable news
Actionable news in MO: ALTRIA GROUP Inc,

What's Next For Altria?

Altria (NYSE:MO) has been doing well in recent weeks as its stock has been climbing, in part due to the brewing deal between SABMiller (OTCPK:SBMRY) and Anheuser-Busch Inbev (NYSE:BUD). But this deal is still likely to face hurdles before it's signed. The tobacco company also plans to release its Q3 earnings report next week. What to expect from this earnings report and what does it mean moving forward. Let's tackle these issues and see what it means for Altria.

Anheuser-Busch- SABMiller deal

The possible $104 billion deal between the two giant beer companies will face hurdles along the way including regulatory and financial. From the regulatory perspective, the U.S. Senate Judiciary Subcommittee on Antitrust will convene to examine this deal and see whether this merger could have an adverse impact on U.S. consumers and level of competition in the beer market. In Europe and China, the merger will also be scrutinized by lawmakers. In China, according to one report, this deal could further augment the market share of the merged company to a total of close to 40%. This deal could face a battle with the U.S. Justice Department as Anheuser-Busch faced back in 2013 over the $20 billion deal for Mexico's Grupo Modelo.

Some analysts think that since AB Inbev holds a 45% market share in the U.S., it may need SABMiller to sell its stake in MillerCoors, which is estimated to be worth $10...


More