South Africans have one-upped the Aussies again. Brewing giant, SABMiller, has flexed its muscles and laid claim to the iconic Australian brand, Foster’s. The takeover of the Australian beer maker should be complete by the end of the year, and the price tag has been confirmed at $10,2 billion, with a bit of change for some dividends.
The breakthrough deal, which has been on the cards for months, puts SABMiller at the head of the Australian beer market, and further cements the brand’s position as the world’s second largest brewer.
As part of the deal announced today, Foster’s will return A$0.30 a share as well as a final dividend for year the year ending June 30 2011. This puts the total value of the deal, including debt, at a bit over $12 billion.
SABMiller Chief Executive Graham Mackay is satisfied:
We are pleased that we reached agreement on a recommended transaction to be put to Foster’s shareholders.
He also said that, “the figures are the figures,” when remarking on the purchase price of A$5.10 a share, up four percent from the previously rejected offer of A$4.90, but not near the Australian’s hopeful A$5.53, which he and the board clearly didn’t see as value for money.
The move continues SABMiller’s strategy of creating an attractive global spread of businesses to add to its operations in the emerging markets of Africa, Latin America, Asia and Eastern Europe.
SABMiller will now have access to about half of Australia’s beer market, but little else because Foster’s got rid of its wine business earlier this year.
[Source: Telegraph]
