HOLLAND: Heineken deflects Bavaria bid talk
Heineken did not make a bid for Bavaria, as it believes there are better opportunities elsewhere, the company said yesterday (19 July). The Colombian brewer sold a majority stake to SABMiller yesterday after what speculation had suggested had been a two-horse race between Heineken and the UK-based brewer.
Speaking to Reuters yesterday, Heineken spokeswoman Veronique Schyns said: "We decided not to make a bid for Bavaria as the risk profile was too high, from a political point of view as well as in terms of market position.
"We are convinced there are better value-creating opportunities elsewhere like, for instance, in Russia," she added.
The Dutch brewer will continue to look for "good growth opportunities for the Heineken brand and good opportunities for acquisitions" in South America, Schyns told the news agency.
Heineken's presence on the continent consists of a stake in CCU, which operates in Argentina and Chile, a holding in Brazil's Kaiser, and activities in Panama, Costa Rica and Nicaragua.
Industry rumours throughout this year have suggested that SABMiller, Heineken, Anheuser-Busch, InBev and Scottish & Newcastle had all at some point considered acquiring a majority stake in Bavaria. Speaking to just-drinks yesterday, SABMiller's CEO, Graham Mackay confirmed that there had been four bids on the table, and the Santo Domingo family, which owned a 75% holding in Bavaria, whittled them down through a "reverse due diligence" process.
Sectors: Beer & cider
Following its recent re-launch in the UK, SABMiller has introduced its Italian lager brand Peroni Nastro Azzurro to the Romanian market....
The US brewer Anheuser-Busch Cos has reported first quarter 2005 domestic beer volumes below previous expectations....
Heineken has acquired a 40% stake in a Chinese brewery....
Heineken Espana is looking to invest heavily in a new plant in southern Spain....
Carlsberg cannot compete with some of the larger global brewers when it comes to earnings, according to the Danish company's CEO....
Anheuser-Busch has had its rating downgraded....
Grupo Empresarial Bavaria is not looking to sell up, its president has confirmed....
The chief financial officer of Brau Union has resigned....
- Most Valuable Spirits Brands in 2017 - The facts
- Most Valuable Beer Brands in 2017 - The facts
- Travel Retail needs a disruptor - Comment
- What the future looks like for Australian wine
- Interview, Fever-Tree's founders
- Diageo ready to lock horns with AB InBev in Africa
- Heineken sees Tesco pull SKUs in UK
- Coca-Cola Co announces senior executive shake-up
- Fever-Tree eyes bumper NPD, pack formats for 2017
- Heineken mulls M&A with $1.75bn notes issue
- Central and East Europe Report Package
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global liqueurs insights - market forecasts, product innovation and consumer trends research