![#](https://e-malt.com/Images/left_top_corner16x200.gif) | E-Malt.com News article: 2354
Brazil: Companhia de Bebidas das Américas – AmBev, the world’s fifth largest brewer and Brazil’s leading Beverage Company, presented on March 16 at the BOVESPA further information regarding the synergies derived from the alliance with Interbrew. AmBev provided complementary data describing the expected sources of synergies and the respective amount estimated for each one of them. Annual Operating Synergies, totalling US$ 1.5 billion on a NPV basis: Administrative Expenses - 30 US$ million per year; Variable Production Costs 56 US$ million per year.
The company informed that its allowance to pay interest on own capital is currently limited by the relatively low book value of its equity compared to earnings generated. As the merger of Labatt into AmBev’s balance sheet should significantly increase its shareholders equity, the company will benefit from a higher allowance to pay interest on own capital, which is tax deductible.
18 March, 2004
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