SOUTH KOREA: Lotte Group rejoins race for Oriental Brewery - report
Lotte Group has re-entered the bidding race to buy Anheuser-Busch InBev's Oriental Brewery in South Korea, according to reports.
Lotte Group, which was initially reported to have fallen out of favour after the first round of bidding at the end of February, has rejoined the list of potential suitors after raising its offer price, according to a Reuters report today (1 April).
Analysts widely expect Oriental to be sold, possibly for up to US$2.5bn, although Anheuser-Busch InBev has repeatedly declined to comment on the matter.
The brewing giant has set a 10 April deadline for the sale, according to the Reuters report, citing sources close to the situation. Lotte's rivals for the deal are believed to include several private equity firms, while SABMiller and Asahi are also thought to have shown interest.
Oriental, which is South Korea's second largest brewer, was originally expected to be sold to help A-B InBev finance a US$7bn bridge loan taken out to help pay for InBev's $52bn takeover of its US rival.
A-B InBev has since eased the pressure for disposals, however, announcing last month that it has made better-than-expected progress on cost savings from the takeover. It expects to save $1bn in 2008.
Sanford Bernstein analyst Trevor Stirling said last month that the brewer "not need to do any disposals in 2009".
He said: "We continue to believe that management is committed to achieving $7bn of disposals, and indeed is very strongly incentivised to de-lever, but there is no need for a fire sale of assets."
The top ten stories published on just-drinks this week:...
Lion Nathan is to distribute the Budweiser portfolio of brands in Australia from December, the company announced this week....
Blackstone Group is looking at a possible deal to buy Anheuser-Busch InBev's theme parks, according to reports....
The Irish Competition Authority has given Clonmel-based drinks group C&C the go-ahead for its EUR205.2m (US$300.8m) purchase of the Tennant's lager brand and assets in Scotland and Northern Ireland....
See the top ten stories published on just-drinks this week....
Private equity group CVC Capital Partners still intends to acquire Anheuser-Busch InBev brewing assets in Eastern Europe, just-drinks understands....
InBev UK, the divsion of Anheuser-Busch InBev, is to launch an advertising campaign for its alcohol-free Beck's Blue brand....
The CEO of Canada's Brick Brewing Company has told just-drinks his business will "aggressively defend" an intellectual property lawsuit brought by Anheuser-Busch InBev....
- How the can has a part to play in beer's future
- The Future of Cocktails - Consumer Trends
- Will Brexit make a winner out of Travel Retail?
- Coke Life - Coca-Cola's niche soda - Comment
- Global water targets risk hiding local concerns
- Diageo reveals revival plan for former factory
- Diageo Australia's commercial head to step down
- US hits AB InBev with US$6bn fine over India sales
- William Grant sees 2015 sales, profits lift
- Stoli Group CEO Rob Cullins to step down
- Global gin insights - market forecasts, product innovation and consumer trends
- The Next Seven Big Beverage Markets
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends