SAM - Boston Beer unlikely takeover target for Heineken - report

2023-04-23 09:19:50 ET

Boston Beer ( NYSE: SAM ) is unlikely to be a takeover target for Heineken ( OTCQX:HEINY ) as its currently focused on its operations and isn't looking form major acquisition in the U.S.

Heineken ( OTCQX:HEINY ) is "still trying to figure out" its plans and is "not there yet" on big M&A deals, according to a CTFN report from Thursday, which cited a sector adviser.

The report comes after a Bernstein analyst late last month suggested Boston Beer ( SAM ) could be a possible takeover target for Heineken ( OTCQX:HEINY ). The analyst suggested that the acquisition of key Boston Beer properties Twisted Tea and Truly Hard Seltzer could be attractive for the Dutch brewing giant.

The sector advisers told CTFN that they disagreed with the analysis and that flavored malt beverages and read-to-drink products would be a suboptimal fit for Heineken ( OTCQX:HEINY ). RTDs appear to have a hit a peak and individual RTD brands don't seem to have sticking power.

Heineken ( OTCQX:HEINY ) shareholders, who saw their stock decline 12% last year, would likely question the need to add a RTD portfolio to the Dutch beer giant, one sector adviser told CTFN.

Boston Beer ( SAM ) and Heineken ( OTCQX:HEINY ) didn't respond to CTFN request for comment.

Boston Beer ( SAM ), whose shares dropped 35% last year, is set to report Q1 results on Thursday. Heineken ( OTCQX:HEINY ) reported its results on Wednesday.

More on Boston Beer ( SAM )

• Boston Beer: Unmaterialized Truly Demand Continues To Hurt Performance
• Despite A Massive Drop In Price, Boston Beer Looks Overvalued
• Boston Beer stock slides as Bernstein cuts to Sell
• Boston Beer, Molson Coors cut to Sell as seltzer sales fizzle

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