SAB Miller brews up bid for Foster's
The world's second-largest brewer, SAB Miller, is thought to be plotting a £7bn move to secure the beer operations of Australia's biggest brewer.
Buying up: SABMiller will make a move for Fosters Lager
SAB wants to buy Carlton & United Breweries, which produces Foster's The heightened interest in the Aussie beer group follows this year's longawaited decision to split off its struggling wine business.
Industry sources said trade buyers would likely wait until the wine arm was removed and disposed of before making a move on Foster's.
This would give suitors a clearer view of what they were getting, and remove the risk that they would be left with an unwanted wine business.
Foster's is expected to attract bids from suitors including SAB and Japan's Asahi Breweries.
Carlton & United Breweries, run by former navy weapons engineer John Pollaers, generates around 85% of Foster's group earnings and has a profit margin of 38.5%.
SAB, which makes Peroni and Miller Lite, gets about 85% of its profits from the emerging markets of Latin America, Africa and Asia.
One industry source noted SAB would almost certainly look at 'everything' that comes up for grabs.
The giant brewer's focus is on the beer and soft drinks markets.
By capturing Fosters, SAB would be in a position to mount a serious challenge to the dominance of Anheuser-Busch InBev, the world's biggest brewer.
As well as capturing the eponymous lager, SAB would also take control of Victoria Bitter, Australia's best-selling beer.
The group would become the dominant brewer in Australia if it were to clinch a deal.
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