Filed under: Anheuser-Busch Cos (BUD)
With the markets in a swoon, marquee assets are on sale in the US. And, with the drop in the dollar, the valuations look even more compelling. Something else: the surge in commodities — especially in oil — is bulging the assets in mega sovereign wealth funds.
In fact, even US icons are under attack, such as Anheuser-Busch Companies Inc. (NYSE: BUD), which is fending off a hostile takeover from Belgium’s InBev.
True, there is some good news. For example, our domestic companies will have an edge with exports (it seems that this has saved us from a recession — at least so far). But, alas, it is little consolation.
Perhaps the most effective way to boost the value of the dollar is to increase interest rates. However, this will be a tough thing to do — in light of the upcoming election, the housing sump and continued economic weakness.
In other words, US assets should remain cheap. And, foreign buyers can’t ignore this. So, it’s a good bet that we’ll see more and more dealmaking from overseas.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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