Heineken is eyeing a possible bid for Brazil's second largest brewer, Schincariol, as it seeks to compete more strongly with Anheuser-Busch InBev in the country, according to a report.

Heineken is running its eye over Schincariol's books, according to a Bloomberg report today (9 May) that cites two unnamed sources familiar with the matter. The business cold fetch US$2bn, it is thought.

When contacted by just-drinks, a Heineken spokesperson declined to comment on the speculation.

Schincariol is Brazil's second biggest brewer by volume, although sits a long way behind Anheuser-Busch InBev's AmBev business, which accounts for around 70% of all beers sold in the country.

Still, rising disposable incomes in Brazil have made it a promising beer market and Heineken has been keen to establish a firm footing in the country as part of a wider foray into Latin America, following its acquisition of Mexico-based FEMSA Cerveza last year.