Belgium Interbrew, the maker of Stella Artois beer, could move its legal home from Belgium to a tax haven after completing a €9.2bn ($11.3bn) alliance with AmBev of Brazil, Financial Times posted on March 31. The brewing multinational, which has a 638-year history in Belgium, will weigh up whether to change where it is legally incorporated - and where it is taxed - once it has changed its name to InterbrewAmBev. Any such move would be politically controversial, especially as Jean-Luc Dehaene, the former Belgian prime minister, is a non-executive director.

However, Interbrew stressed that its physical headquarters were certain to remain in Leuven, near Brussels, where it is due to move into new offices.Interbrew proposed a complex exchange of assets with AmBev last month, saying the combination would create the world's biggest brewer by sales volume. Hundreds of documents released subsequently include the disclosure that Interbrew and AmBev's controlling shareholders want to complete "an examination of the feasibility and desirability of redomiciling the company to another jurisdiction by no later than the first anniversary of the closing [of the deal]". If a move appeared desirable, "the company will be redomiciled as soon as practicable".

The AmBev deal is expected to close in the third quarter of 2004, although part of it has been legally challenged by Femsa, the Mexican brewer. Analysts at Merrill Lynch, an Interbrew adviser, predicted InterbrewAmBev would choose Luxembourg, "probably for tax purposes". They said such a move should not compromise financial transparency because InterbrewAmBev will also consider a New York Stock Exchange listing, which would entail a flow of detailed data.

Axel Gietz, Interbrew senior vice-president for corporate communications and public affairs, said no decision had been made: "This company has very strong roots here [Belgium]. It is not a foregone conclusion."

Interbrew's plans could prove sensitive for the coalition government led by Guy Verhofstadt ahead of elections in June. Mr Verhofstadt has overseen Belgium's most ambitious fiscal reform package in decades, but studies regularly conclude that Belgian corporations continue to face an excessive tax burden.

Peter De Crem, parliamentary leader of the opposition Flemish Christian Democrats, said "it would be a very black day for Belgian industry and the authorities" if Interbrew ceased to be domiciled in Belgium. Mr Dehaene declined to comment except to say "I am not in Interbrew as a politician".

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