UK: SABMiller builds war chest for further acquisitions

The newly created SABMiller has indicated that it is gearing up for further acquisitions after it announced a share placing worth close to £614m (US$953m) today.

SABMiller, which was created when South African Breweries completed its acquisition of Miller Brewing earlier this week, said the placing would give it flexibility in the face of a rapidly consolidating global beer industry, including "opportunities to enhance its position as a global brewer".

Speaking today, Nick Chaloner, a company spokesman said: "Basically, we have a pipeline of deals." The areas expected to be targeted by SABMiller are the markets where it already has a foothold, such as China, Central America, India and Africa.

"We see ourselves as a global brewer," Chaloner said.

The brewer said that the price of the share placing would be announced once the bookbuilding process closes - expected to be on or before Thursday.

News of the placing came with a trading update from Miller. It said that since March, trading had been "broadly in line with expectations" and that Miller's financial performance in the second quarter will be in line with that of the same period in 2001.

Yesterday SAB announced that, following the approval of its shareholders at the EGM on 1 July and the receipt of satisfactory regulatory clearances, its acquisition of Miller Brewing from Philip Morris Companies had been completed.