Fosters Group edges closer to demerger

Foster's Group edges closer to demerger

Foster's Group has cleared another hurdle to its proposed demerger after gaining court approval for the move.

The Supreme Court of Victoria in Australia has approved Foster's' plan to demerge its Australian beer business, Carlton & United Breweries, from its global wine arm, Treasury Wine Estates, the group said today (4 May).

For the demerger to take effect, the drinks maker now only needs the backing of the Australian Securities and Investments Commission. A hearing is scheduled for 9 May.

Last week, Foster's shareholders voted to back the demerger. Several analysts, including Foster's' own independent advisor group, Grant Samuel, believe that the move will lead to takeover offers for both divisions.