SABMiller turns hostile in bid for Foster’s

Foster’s is seen as the last big prize in a beer industry that has seen heavy consolidation in recent years SABMiller has turned hostile in its bid to take control of rival brewer Foster’s Group. The London-based brewer said on Wednesday it is taking its £6bn offer for the Australian beer and wine producer directly to its shareholders. The move comes two months after SAB made its initial approach, which was promptly rejected by the Foster’s board. “As there has been no willingness to engage in relation to SABMiller’s proposal on the part of the Foster’s Board, SABMiller has decided to make an offer to Foster’s shareholders directly,” SAB said. A successful merger would bring together many of the brewing industry’s famous names. SAB Miller’s brands include Peroni, Grolsch, Pilsner Urquell and the Miller range of beers. Foster’s is best known for its eponymous lager – much of which is brewed in Manchester – and is seen as the last big prize in a beer industry that has seen heavy consolidation in recent years. At AUS$4.90 a share, SAB’s bid is actually slightly below current Foster’s share price. The Melbourne-based company had claimed that this price “significantly undervalues the company”, and analysts believe SAB might have to pay as much as AUS$5.40 a share to win. Control of Australia’s beer market is shared between Foster’s and Lion Nathan. Wine, though, is now a more popular beverage in the country than beer . Foster’s sold off its own wine business, which includes the Lindemans and Rosemount labels, earlier this year – a move that encouraged speculation that the rest of the company might be acquired. Shares in SAB Miller fell by 1.5% to £20.85 in early trading. Before moving for Foster’s, the company had been focused on growing its business in developing beer markets such as Africa and Eastern Europe. SABMiller Food & drink industry Mergers and acquisitions Beer Food & drink Graeme Wearden guardian.co.uk

Posted by on August 17, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.