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Lion thirsty for Coca-Cola
Lion Nathan has made a bid for Coca-Cola Amatil. With a bid of A$7.7 billion on the table, this acquisition would make the group the largest beverage company by sales in Australia and New Zealand. However, CCA described the proposal as having "a number of material deficiencies".
The Australian based CCA is 30% owned by its main supplier, Coca-Cola. Under the current proposal, its shareholders would be offered a combination of cash and shares in Lion Nathan, which currently stands behind Foster’s as Australia’s second largest brewer. Lion Nathan’s key backer is Kirin, the Japanese brewer which holds a 46% stake in the company and has been expanding its Australian presence this year with the purchase of Dairy Farmers and National Foods.
Lion Nathan commented that this deal would create a group with strong diversity across well-known soft drinks, spirits and wine brands. Despite expressing strong reservations over the offer, CCA declined to reject the proposal outright. If successful, this move could see one of the biggest shake ups yet in a year that has seen major changes within the Australian consumer industries sector.
Gabriel Savage 19/11/08