Fosters Group to be swallowed by SABMiller

Foster's Group to be swallowed by SABMiller

SABMiller's acquisition of Foster's Group has become "legally effective" after an Australian court approved the deal.

Foster's said today (2 December) that the Supreme Court of Victoria has given the green light for the acquisition, which gives the Australian brewer an enterprise value of AUD11.5bn (US$11.75bn) including debt. The court clearance follows support for the deal from Foster's shareholders earlier this week, with 99% of shareholder votes cast in favour of the acquisition two days ago.

The court clearance means that the acquisition is now "legally effective", Foster's said. Beyond today, its shares are not expected to trade again on the Australian Stock Exchange, after the firm applied for trading to be suspended.

Foster's shareholders are set to receive AUD5.4 per share from SABMiller by 21 December, the group said. Foster's is Australia's largest brewer by volume, ahead of Kirin Holdings-owned Lion Nathan.