See if you can follow along with the story of the declining AB InBev Belgian stock as Brazilian Beer Taxes increase. This from Bloomberg:
Anheuser-Busch InBev NV (ABI), the world’s biggest brewer, posted the second-biggest decline among leading Belgian stocks after the Brazilian government raised beer taxes more than anticipated.
The shares fell as much as 3.3 percent and were down 3 percent at 53.09 euros as of 12:42 p.m. They had risen 16 percent this year before today.
AB InBev, based in Leuven, Brussels, owns Cia. de Bebidas das Americas, Brazil’s biggest brewer, or AmBev, and gets about 30 percent of its earnings before interest and taxation from the country, where it sells beers including Skol and Brahma.
The Brazilian government raised taxes on beer by 26 percent yesterday. A price increase of about 2.9 percent may be needed to offset the measure, Gabriel Vaz de Lima, an analyst atBarclays Capital in Sao Paolo, wrote in a note yesterday.
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