JAPAN: Asahi building acquisition war chest
Japan's Asahi Breweries plans to build a JPY400bn (US$4.5 bn) war chest for overseas acquisitions by using loans and revenue.
Company officials have predicted it will earn JPY360bn (US$4bn) by 2012 from overseas holdings, including Schweppes Australia and Tsingtao Brewery in China.
After dividend payments, the company estimates it will have JPY225bn (US$2.5bn), plus JPY25-30 bn (US$288-335m) in savings from cost cutting at its core spirits businesses.
Asahi also plans to borrow up to JPY170bn (US$1.9bn) for major acquisitions, while keeping its debt to equity ratio below one.
"There will be a lot of consolidation in the industry, and we want to play a major role," Asahi Breweries' president Hitoshi Ogita told reporters in Tokyo earlier this month.
For more on Asahi's three-year plan, click here.
- A tobacco analogy soft drinks will want to embrace
- Pernod's Portman Group penalty - a coincidence?
- just The Preview - SABMiller's Q1
- just Five Years Ago: A-B InBev sells Oriental
- Cleaning China's seedier side brings Remy balance
- Diageo faces public consultation over W&M sale
- Diageo's Captain Morgan Facebook ad banned
- William Grant silent on Drambuie bid talk
- Bacardi to fight US football team legal action
- Remy posts Q1 sales drop as Edrington loss bites