Blog: Chris Brook-CarterAB's (Har)bin shopping with its pocket money

Chris Brook-Carter | 4 June 2004

When Anheuser-Busch announced its takeover bid for Harbin Brewery this week to rival SABMiller’s, a few eyebrows were raised at the price AB was offering.

AB offered US$5.58 per share for the Chinese brewer, beating SABMiller’s earlier offer by almost 30%. Suffice to say, SABMiller decided not to proceed any further and said it would accept AB’s offer for hte share it already owned in Harbin.

The South China Morning Post quoted the chairman of China Resources Enterprise - SABMiller's Chinese partner - as saying that the takeover battle defied business logic. “Suddenly, all parties have changed their views on the mainland beer market after foreign investors deserted it five years ago,” Frank Ning Gaoning said. “I don't know how foreign firms calculate the return on their assets. They must be using a long-term perspective.”

Although China Resources is now Harbin’s principal domestic rival, Gaoning may have a point – 30% is quite a mark-up from SABMiller’s bid.

One aspect to bear in mind, however, is the position of the protagonists involved – the big boys have come out to play and they’re using their loose change, relatively speaking.

In a note this week, Mark Swatzberg, an analyst at Legg Mason voiced the following opinion: “We are hard-pressed to justify the offer's premium to AB's valuation and the price at which Harbin shares closed on Monday. But,” he added, “(we) view the near-term value destruction as limited because this is not an enormous financial transaction for AB.”

Oh, to have that kind of money.


Heineken brings commercial know-how to new recruitment drive

Heineken is known for its flashy adverts. Now the brewer has given the star treatment to a new recruitment drive with a glamorous and highly-persuasive ad that, quite frankly, had the staff here at...


Queues are forming for latest (Jim Beam) Apple product

Move over iPhone 7 headphones-gate, there is a new Apple product causing a stir. Or a shake. Or just a shot....


Bacardi's ice cube of information

I was full of questions yesterday when reading our news story about Bacardi's Martini Smart Cube. An ice cube-shaped device that can provide real-time information about its consumer? How? What? Why? H...


Ardbeg's US$16,000 camping trip

News reaches us today of what has been heralded as the "world's most daring whisky challenge". The Ultimate Ardbeg ARDventurer has been launched this week with an inaugural three-day camping trip....

just-drinks homepage

Forgot your password?