Foster's said yesterday that if it was successful in acquiring Southcorp it would close down the winemaker's head offices and seek the retirement of the Southcorp board.

Speaking in a Southcorp bidders statement on its website, Foster's said that following a successful bid it would "promptly conduct a review of all of Southcorp's operations to accurately review the synergy potential (most of which are expected to be Australian based and cost related) and identify opportunities to grow revenue in global markets."

Foster's said it would look at the optimisation of sales operations including the elimination of duplication in sales functions; and the elimination of administrative functions and other overhead duplication, "which is likely to result in the closure of the Southcorp head office".

It added that in identifying potential cost savings arising from the combination, it may development a more efficient consolidated production and packaging infrastructure, which is likely to impact operations
in the Hunter Valley, Coonawarra and McLaren Vale.

The statement also said that upon a takeover, Foster's would appoint its own nominees to the board of directors of Southcorp and its subsidiaries and seek the retirement of all current members of the boards of Southcorp and all associated entities.

However, it would retain Sandy Oatley as the "brand champion" for the Rosemount Estate brand.