InBev Closes Quinsa Deal

10/08/06 InBev has announce that AmBev has closed the transaction with Beverage Associates Corp. to acquire all of BAC’s remaining shares in Quinsa for a total purchase price of 1.25 billion U.S. dollars. AmBev’s equity interest in Quinsa has increased from 56.72% to 91.18% of its total share capital.

Quinsa is the largest brewer in Argentina, Bolivia, Paraguay and Uruguay, having a share of the Chilean market as well. It also is the main Pepsi bottler in Argentina and Uruguay.

AmBev expects the transaction to increase synergies between the operations of Quinsa and AmBev throughout Argentina, Uruguay, Paraguay, Bolivia and Chile. The transaction reflects AmBev’s commitment to grow in these markets.

This agreement, which was reached in April represented the final step of a transaction initiated in May 2002, whereby AmBev acquired an initial stake in Quinsa. The respective agreements provided that BAC had a put option in connection with its remaining shares in Quinsa, in exchange for AmBev’s shares. AmBev had a corresponding call right after 2009.

Since the creation of InBev in September 2004, InBev has included the results of Quinsa in its financial statements using the proportionate consolidation method. As a consequence of the agreement and the resulting increase in shareholding in Quinsa, InBev will use the full consolidation method upon completion of the transaction.