The Australasian brewer Lion Nathan Ltd said today it had not held formal talks with rival Foster's Group Ltd over the possibility of sharing production facilities in Western Australia.

The proposal has been raised by Foster's, Lion said in a statement, but not in a concrete form.

The Australian press had reported that Foster's and Lion had spoken about the possibility of Foster#;s brewing its products at Lion Nathan's Swan Brewery.

The Lion statement said: "Recently, Fosters raised the possibility of using our production facilities in Western Australia. It is too early to say whether there will be any formal discussions to pursue this possibility. It is important to note that we have had no concrete proposal from Foster's to consider."

Lion said it was always considering ways of operating its business more efficiently, which may involve synergies with other brewers, although any proposal would be discussed the Australian Competition and Consumer Commission (ACCC) at the appropriate time.