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Japan’s Asahi Group Holdings said it has signed a 1.185 trillion yen ($11 billion) loan with Sumitomo Mitsui Banking Corp (SMBC) to finance the acquisition of Anheuser-Busch InBev’s (BUD) Australian subsidiary Carlton & United Breweries.Back in July, Anheuser-Busch, the world’s largest beermaker said it entered into an agreement for the Japanese beer maker to buy its Australian operations for an enterprise value of A$16 billion ($10.4 billion). The deal has received regulatory approvals and is expected to close on June 1.The brewer of Budweiser, Corona and Stella Artois said it will use the proceeds of the sale to reduce debt.Shares in Anheuser-Busch have this year seen their value cut in half as global lockdown orders tied to the coronavirus pandemic have curtailed beer and other alcohol sales as restaurants and bars remained closed and some countries like Mexico were forced to shut down beer production.The stock declined 0.6% to $40.90 as of Friday’s close in U.S. trading.Last week J. P. Morgan analyst Celine Pannuti upgraded Anheuser Busch’s stock rating to Hold from Sell due to valuation, while keeping the $39 price target intact.At the same time, the analyst cautioned investors to stay defensive in the European beverages sector amid expectations of a “much worse” second quarter following the worst quarter in recent history for the sector due to the fast spread of the coronavirus pandemic.Overall, Wall Street analysts are cautiously optimistic about the stock’s outlook. It scores 3 Buy ratings and 6 Hold ratings from analysts, which add up to a Moderate Buy consensus. Analysts do see some recovery in the shares with the $60.02 average price target indicating 47% upside potential over the coming year. (See Anheuser-Busch stock analysis on TipRanks).  Related News: Facebook Workplace Hits 5 Million Paid Users As Remote Work Demand Rises KKR Invests $1.5 Billion in Reliance’s Jio Platforms In Biggest Deal In Asia Beleaguered Hertz Sinks 36% In After-Market On Bankruptcy Protection Filing More recent articles from Smarter Analyst: * Macy’s Spikes 17% On Refinancing Plan To Weather Coronavirus Crisis * Redfin Brings Back Employees as Housing Market Heats Up * Eli Lilly, Junshi Biosciences To Start Human Testing Of Covid-19 Antibodies By Q2 * Merck Joins Race For Covid-19 Vaccine; Shares Rise 4.4% In Pre-Market Trading

Asahi Group Holdings plans to borrow 1.19 trillion yen (US$11 billion) from Japanese lender Sumitomo Mitsui Banking Corporation to complete its long-brewing purchase of Anheuser-Busch InBev's Australian business.AB InBev, the world's largest brewer, agreed to sell its Australian business for A$16 billion (US$11 billion) to Asahi in July last year, after briefly shelving the Hong Kong initial public offering of its Asia-Pacific arm, Budweiser Brewing Company APAC, amid months of anti-government street protests in the city.The bulk of the proceeds from the sale of the Australian unit, Carlton & United Breweries, is expected to be used to pay down debt. AB InBev's debt topped US$95 billion at the end of 2019, following its acquisition of rival SABMiller two years earlier.Budweiser ultimately proceeded with a slimmed down IPO for the Asia unit in September, raising US$5 billion. Several companies delayed or cancelled their IPOs last year, as the street protests intensified and deal valuations declined in the summer. The IPO of AB InBev was a shot in the arm for the Hong Kong stock exchange, after it lost its crown as the top market for IPOs in the first half of the year.It was the second-biggest listing in Hong Kong last year after Alibaba Group Holding' US$12.9 billion secondary listing in the city. Alibaba is the parent company of the South China Morning Post.In a statement on Monday, Japanese brewer Asahi said it had signed an agreement with Sumitomo for the loan and would refinance the borrowing by raising debt and 300 billion yen of "equity credit attributes".The deal comes three years after AB InBev agreed to sell the beer brands Grolsch and Peroni, as well as some of the European operations of the former SABMiller, to Asahi for US$2.9 billion. The current deal for AB InBev's Australian business gives the Japanese brewer a much larger presence Down Under, where it already sells its Asahi Super Dry lager.Asahi originally planned to complete the acquisition in the first quarter, but announced in March that the deal would be delayed, as the companies were still awaiting approval from Australian authorities amid the coronavirus pandemic, which has forced many countries to close their borders and shut businesses to stem the spread of the virus.The coronavirus, which causes the disease Covid-19, has infected more than 5 million people worldwide. Australia's borders remain closed to international visitors, but the country agreed this month to create a travel "bubble" between Australia and New Zealand when it is safe to do so.The transaction is expected to be completed on June 1, Asahi said on Monday.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.

You probably wouldn't pick Anheuser Busch (NYSE:BUD) as a play on the novel coronavirus.Source: legacy1995 / Shutterstock.com Unlike other publicly traded companies that have found positive momentum as states ease social restrictions, Anheuser Busch stock remains deeply embattled on a year-to-date basis. Nevertheless, I believe the markets are acting irrationally. When you break down BUD stock, this is one of the most compelling discount stocks available.First, the technical picture as I said doesn't intuitively come across as a potential recovery narrative. Last week, I discussed the bull case for Boston Beer Company (NYSE:SAM), which is backed by a strong management team, an equally strong brand and a compelling product mix.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnsurprisingly, SAM shares have skyrocketed off their March lows. In contrast, Anheuser Busch stock is wandering aimlessly. * 7 Excellent Penny Stocks Ready to Roar However, you can also look at this as a case of BUD building long-term support. Many investors don't want to buy into momentum; rather, they prefer getting in on the ground floor. But if you can stomach the risk, the potential for BUD is explosive.This brings me to my second point. Although the coronavirus has been devastating for virtually all businesses, it has also created pockets of opportunities for a select few companies. One of them is Anheuser Busch.As you know, the company specializes in budget beer brands such as Budweiser, Bud Light, Michelob Ultra and Busch Beer. In the pre-coronavirus days, that didn't quite help the case for Anheuser Busch stock, as millennials overwhelmingly prefer craft beer to traditional "corporate" brands.But genuine craft beer is primarily consumed in restaurants, bars and tasting clubs. These institutions went out of commission during the quarantines. Economic Realities Bolster the Case for Anheuser Busch StockNow, it's true that restaurants going out of commission isn't a completely clear-cut catalyst for BUD stock. After all, Anheuser sells their brands to restaurants as well. Furthermore, budget beer is huge at sporting and live events. Obviously, even with the return of sports, we won't know when governing agencies will allow large gatherings.However, the critical point about craft beer is that smaller companies were left with very few mitigating options. As I discussed about Boston Beer, they too had to deal with expiring kegs. But because of their strength and influence, they were able to channel their resources to make the best of the situation. Most craft breweries don't have that luxury.Cynically, this dynamic opened an opportunity for Anheuser Busch stock in that the underlying company essentially received free organic marketing. Just because a pandemic hits town doesn't mean consumers will magically abstain from imbibing. In fact, every data source indicates that consumers flocked to grocery stores to stock up on essentials: food, water, toilet paper and beer…lots and lots of beer.Indeed, reports indicate that all alcohol categories saw significant sales increases, but especially so for budget beer. Specifically, Anheuser's Busch Light sales jumped 44% over a two-month period. Put another way, demand for alcoholic products has always existed. The virus outbreak merely shifted it from one channel (bars and restaurants) to another (home consumption).Better yet, Anheuser Busch stock is likely to be unaffected by the velocity of economic rebound over the next several months. If we have a quick recovery, consumers will probably maintain their budget-focused mentality just in case. Because this crisis was so steep and unprecedented, they're not about to throw caution to the wind.If we slog it out, though, BUD still looks good because of its main products' lower price point. BUD Could Be an Unlikely HedgeIf you've followed my work during this troubling time, you'll know that I've always focused on the bigger picture. The megatrends I've been harping on for years will still reshape global societies; the novel coronavirus has merely delayed those shifts.As you can see for yourself with the alcohol demand, great opportunities don't die. Instead, they filter down the path of least resistance.That said, if we were to suffer a protracted recession, Anheuser Busch could turn out to be an unlikely hedge. According to data from the Great Recession, drinking increased significantly in the home as workers sought coping mechanisms from the many pressures associated with the downturn.To be clear, I'm not suggesting that investors buy BUD from the cynical angle that people will drink their troubles away. Tthat phenomenon will always be with us in any circumstance. Instead, I'm pointing out that millions of consenting adults turn to various products to help them deal with daily life. In a recession, this spark will only grow stronger.As well, many restaurants and breweries could go out of business because of the coronavirus. Thus, I would expect continued high demand from grocery stores, which is a net positive for BUD.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Undervalued Anheuser Busch Stock Has a Bad Case of Market Irrationality appeared first on InvestorPlace.

J.P. Morgan notes that the stock has lost nearly half its value since the start of the year, putting it squarely at the bottom of the pack of its beverage peers.