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SABMiller set for Foster’s stand-off
SAB Miller and Foster’s Group are set for a prolonged stand-off after the former’s takeover bid of AU$10 billion was rejected by the Australian brewing business.
The London-based brewing behemoth, which brews Peroni and Pilsner Urquell, is looking to strengthen its hand Down Under but its position as the sole bidder for the Foster’s business, which boasts Victorian Bitter and Cascade beer in its portfolio, has initially undermined its acquisition attempt.
With Heineken, Asahi and Carlsberg all declaring their disinterest in Foster’s, investors are holding out for an improved offer from SAB Miller, thought to be around 10%, before discussions can begin.
Many analysts have questioned the rationale behind SAB Miller’s bid for a landlocked and stagnant market but SABMiller, five times the size of Foster’s, claimed it would provide greater purchasing power in Australia and be able to offer bespoke beers into a increasingly segmenting beer sector.