beer industry APB acquisition

Dutch brewer Heineken (HEIN.AS) said on Friday its acquisition of the rest of Asia Pacific Breweries would boost its earnings per share slightly in the first year and yield 25 million euros ($33.5 million) of synergy benefits this year and next. (8th February, 2013)
Heineken had must to do deal with APB to avoid thebev to acquire it. Competitor in growth market
However, the deal will raise Heneiken's debt ratio to 3.3, more than its target 2.5, according to the Wall Street Journal. This will limit the company's ability to acquire companies in other areas, including the surging Brazil market. Heneiken hopes to bring its debt down through repayments and cash generation within two years, according to the Journal, so its lost deals will depend largely on the cycle of mergers.
Shares of Heneiken were up 0.86 percent to 46.39 euros at Friday's close.
Shareholders of Fraser & Neave, the Singaporean conglomerate that owns Asia Pacific Breweries, voted Friday to approve the sale of the brewing unit to Heineken for a sweetened price of 53 Singapore dollars, or $43.24, for each share of Asia Pacific Breweries the Dutch company did not already own. The total to be paid by Heineken is 5.6 billion Singapore dollars, or $4.6 billion, and the deal values Asia Pacific Breweries at around $11 billion.
An important factor causing the underperformance (last 6 months) relative to the market is Heineken’s Emerging Markets exposure. Growth is weakening across Emerging markets. Last year, with the full acquisition of Asia Pacific Breweries, Heineken significantly increased their EM exposure. Currently 10-15% of Sales coming from Asia Pacific, 10-15% from Mid-America (Mexico) and 15-20% from Central Eastern Europe. In the short term this exposure has put some downside pressure on the share price, however it will probably be an important factor in Heineken’s upside potential in the long run. For example, Mexico GDP growth in 2013 is 0.9%, while growth is expected to rebound to 3.5-4.5% in coming years. Beer volume in Emerging Markets (64%) is currently higher than volumes in Developed Markets (36%), which has been 50-50 in 2007. In my belief the current EM weakness offers a perfect buying opportunity of long term winners.
As the takeover of APB caused a relatively big investment and debt obligation the company has started a cost saving programme which will lead to expected cost savings of EUR 525 mln over 20120-2014. This could lead to future margin expansion as it will lead to a more cost-efficient organization