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SABMiller: Banking on water

Oct 28 2009 14:28

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Johannesburg - Brewing giant SABMiller said on Wednesday it is spending $370m on capex in Africa and expects its water business in the continent to post double digit growth.

The London-based brewer of Miller Lite, Peroni and Castle beers said it was keen to snap up the Africa business of French drinks group Castel, adding it had the rights to do so.

"We are spending $370m on capex this year. After that, it will halve to $200m. We think it's sustainable capex," Mark Bowman, SABMiller Africa's Managing Director, said at a media briefing.

"Our partnership with Castel in Africa is now an alliance. Obviously if they decide to sell we will be keen. We have rights to do that."

In Africa, SABMiller's brewing and beverage operations cover 14 countries with a further 19 covered through a strategic alliance with the Castel Group.

The brewer, which earns nearly 90% of its profits from emerging markets like South Africa, Colombia, Poland and China, also said there was no particular reason to sell its stake in South African wine and spirits company Distell.

- Reuters

 
 
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