Andy Morton

In the Spotlight - ThaiBev's Charoen Sees off Fraser & Neave Rival

By | 24 January 2013

F&N is likely going to ThaiBev

F&N is likely going to ThaiBev

ThaiBev is poised to take control of Fraser & Neave after rival bidder Overseas Union Enterprise (OUE) this week stepped out of the race to acquire the Singapore conglomerate.

ThaiBev-controlled TCC Assets' SGD9.55-per-share offer was just too high for OUE, bringing the long-running fight over the destiny of F&N closer to an end. Well, almost an end. Still at large, according to the Wall Street Journal, is what Japanese brewer Kirin will do with its 14.8% stake in F&N.

Thai billionaire Charoen Sirivadhanabhakdi, who owns Chang brewer ThaiBev, should finally get full control of F&N after losing out to Heineken in a tussle over Tiger brewer Asia Pacific Breweries.

Reuters said the planned takeover will allow Charoen to build an “empire” on the back of his drinks and property assets and quoted a person involved in the deal saying Charoen was “ecstatic” after OUE withdrew.

It also said the takeover will mean Charoen's son, Thapana Sirivadhanabhakdi, can cut his teeth after being named ThaiBev president and CEO in 2008.

“Thailand's richest gets richer,” was how Bloomberg's Businessweek put it, adding that ThaiBev's shares hit record highs on Monday. The acquisition will allow Charoen to distribute F&N brands in Thailand, thus further increasing his wealth, it said.

“He is a savvy businessman and a street-smart negotiator,” an analyst said of Charoen. “In this takeover tussle, he kept his cards to his chest. Patient and decisive, that’s how I would describe him.”

One Thai commentator told the Nation that ThaiBev's first priority after the takeover will be to distribute overseas products from subsidiary Serm Suk. He also said the recent appreciation of the baht could lead to more overseas M&A activity coming out of Thailand.

Whatever does happen in the future, it seems as if this episode should finally come to a close, barring any last-minute hitches. It has been six months since a “mystery bidder” swooped for stakes in F&N and Asia Pacific Breweries (APB), sparking Heineken's dash for APB. Time now for the companies to lick their battle scars, and plan their next assault.

Expert analysis

Heineken: the battle for Asia Pacific Breweries

Asia Pacific Breweries is Heineken’s joint venture in Singapore, with a variety of brands and consumer beverages that enjoy prominence in their local markets. The venture is crucial to the firm's growth strategy. This has been compromised following a competitor acquiring shares in the partner firm. Heineken considers this a threat, and wants to gain full control of the venture.

Sectors: Beer & cider, Emerging markets – BRIC, Mergers & acquisitions, Soft drinks

Companies: Kirin, Heineken

View next/previous articles

25 Jan 2013 -

just the Research

Currently reading -

In the Spotlight - ThaiBev's Charoen Sees off Fraser & Neave Rival

There are currently no comments on this article

Be the first to comment on this article

Related research

Heineken: the battle for Asia Pacific Breweries

Asia Pacific Breweries is Heineken’s joint venture in Singapore, with a variety of brands and consumer beverages that enjoy prominence in their local markets. The venture is crucial to the firm's growth strategy. This has been compromised following a...

Kirin Holdings Company Limited - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report

Datamonitor's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage....

Heineken NV in Beer (World)

Heineken, the world’s third largest brewer and leading cider producer, continued its aggressive acquisitive expansion in 2012 with the purchase of Asia Pacific Breweries. This profile considers the extent to which the deal addresses the weaknesses in...

Related articles

just For Subscribers - The week in drinks

Here are the ten most viewed, subscriber-only items on just-drinks this week:

US: Heineken to re-release Newcastle Werewolf

Heineken's US unit is re-releasing a "limited-edition" variant of its Newcastle Brown Ale.

Analysis - Grupo Modelo, Heineken to lose volumes to Mexico craft sector

Grupo Modelo and Heineken are likely to lose "modest" volumes to craft brewers in Mexico after the opening up of the country's beer market, but the two global brewers will see some "net positive", according to an analyst.

Read further items in this columns

In the Spotlight

Who's reporting what on the latest issues in the drinks industry.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page