AUS: Foster's Group shares jump on SABMiller talk
SABMiller moving closer to Foster's Group beer bid - report
Foster's shares rose by 4% on the Australian stock exchange today (24 January). The rise follows a report in the Sydney Morning Herald that lawyers have cleared a path for the SABMiller to acquire Carlton & United Breweries (CUB), despite the Peroni brewer's existing beer joint venture in Australia with Coca-Cola Amatil, Pacific Beverages.
A spokesperson for SABMiller declined to comment on the report when contacted by just-drinks.
Foster's Group is planning to demerge its beer and wine businesses in the first half of this year. There is speculation that it will announce the move in conjunction with its half-year results on 15 February.
Analysts expect both CUB and the wine arm, Treasury Wine Estates, to attract takeover offers.
SABMiller's CEO, Graham Mackay, has confirmed that the group would be interested in a standalone CUB. "We take a look at everything that's available," he told just-drinks late last year.
CUB is Australia's largest brewer, with 50% market share in volume terms, although it has lost ground to the market number two, Kirin Holdings-owned Lion Nathan, in the last five years. Last week, analyst group Merrill Lynch cut its full-year profits forecast for Foster's by 14%.
SABMiller's entry into Belgium's speciality beer market makes sense and more niche deals are likely across Europe's craft beer sector....
- Brown-Forman's march on premium whisk(e)y -Comment
- Will US consolidation leave craft alcohol exposed?
- Are consumers getting tired of consuming?
- Where does AB InBev see the future of beer?
- Should Boston Beer Co put up the For Sale sign?
- Brown-Forman to buy BenRiach Distillery Co
- AB InBev snaps up Italy's Birra del Borgo
- Smirnoff Ice Electric flavours - NPD
- Bacardi rolls out new global Martini ad - video
- US craft beer to hit saturation soon - Koch
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Consumer and Market Insights: Wine Market in China
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Emerging Drinks Industry Trends