There'south a bull market for ... beer!

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Source:   —  April 22, 2016, at 8:16 PM

Budweiser owner Anheuser-Busch InBev and Molson Coors both hit new all-time highs earlier this week. The reason? Investors are betting that AB InBev'south (BUD) megadeal to purchase rival brewer SABMiller (SBMRF) presently has a better chance of getting approved by regulators.

There'south a bull market for ... beer!

It'south beer o'clock on Wall Street.

Budweiser owner Anheuser-Busch InBev and Molson Coors both hit new all-time highs earlier this week.

The reason? Investors are betting that AB InBev's (BUD) megadeal to purchase rival brewer SABMiller (SBMRF) presently has a better chance of getting approved by regulators.

Here'south the latest -- and why it matters for rival Molson Coors (TAP).

The marriage of the King of Beers and the owner of Pilsner Urquell is dependent on the two companies selling off several brands to satisfy antitrust regulators around the globe. Those deals are starting to fall into place.

Japanese brewer Asahi announced on Tuesday that AB-InBev had agreed to Asahi'south proposal to purchase SABMiller'south Peroni, Grolsch and Meantime beer brands.

Latest month, China Resources Beer Company agreed to purchase the remainder of CR Snow, a joint venture with SABMiller that makes Snow -- which is the world'south most favorite beer.

And why's that excellent news for Molson Coors? Because it plans to purchase the fifty-eight percent stake it doesn't already own in MillerCoors, which is a joint venture in the U. S. between SABMiller and Molson Coors.

This deal will give Molson Coors global control of the Miller brands. And it'south contingent on the AB InBev-SAB Miller merger getting a regulatory green light.

Related: Molson Coors to pay $12 billion to obtain large U. S. beer brands

So if AB InBev isn't going to wind up with the Miller portion of SABMiller, what precisely is it buying? A lot of brands that are doing extremely well in emerging markets love Africa and Latin America.

The combined company could become an even larger player in the burgeoning microbrewery market as well.

Even though SABMiller is getting rid of U. K.-based craft brewer Meantime, the combined AB-SAB will continue to be a major player in the craft world.

AB InBev already owns leading craft brewer Goose Island. It bought Blue Point in two thousand-fourteenth and went on a beer binge latest year, scooping up five microbrews -- including three in December alone.

And earlier this mo announced plans to acquire another craft brewer, Devil'south Backbone.

Related: Bud goes on a craft brew buying binge

The company also owns a nearly thirty-two percent stake in publicly traded Craft Brew Alliance (BREW), the parent company of Widmer Brothers Brewing, Redhook Ale Brewery and Kona Brewing Company.

AB InBev'south growing influence in the microbrew world is making it tougher for rivals though.

Boston Beer (SAM), the parent of Sam Adams, reported disappointing results after the closing bell Thursday. The stock plunged nearly ten percent friday. The company said it lost market share due to increased contest in the craft beer market.

This is something that regulators around the world are likely to cite when they conduct their antitrust reviews of the AB InBev-SAB MIller deal. It'south possible that AB InBev and SABMiller could be asked to sell even more brands in order to win approval.

So investors hoping for the deal to near soon may have to keep off for a bit on opening a celebratory freezing one.

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