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SABMiller may buy Foster's beer unit

Aug 22 2010 15:07 Reuters

Company Data

Sabmiller Plc [JSE : SAB]

Last traded R312.73
Change R-1.18
% Change -0.38%
Cumulative volume 1.81m
Market cap R520.50bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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London - SABMiller [JSE:SAB], the world's second-largest brewer, is considering buying the beer operations of Foster's Group, Australia's biggest brewer, for almost R80bn (£7bn), the Sunday Times reported.

SABMiller is planning to buy Carlton & United Breweries, the beer making part of Foster's, the paper said.

A spokesperson for SABMIller declined to comment.

Foster's could attract takeover bids of up to $10bn from suitors including SABMiller and Japan's Asahi Breweries, after a long-awaited decision to split off its struggling wine business, Reuters reported in June.

Carlton & United Breweries, run by former navy weapons' engineer John Pollaers, generates around 85% of Foster's group earnings and has a profit margin of 38.5%.

SABMiller, the maker of Peroni and Miller Lite, gets about 85% of its profits from the emerging markets of Latin America, Africa and Asia.

 
 
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