UK-based SABMiller has made a hostile bid for the Australian beer giant Foster’s.
The Foster's board rejected SAB's initial A$9.5 billion (£6.1 billion) offer made in June, saying it was too low.
SABMiller has now taken the offer directly to the company’s shareholders, though it remains unchanged at A$4.90 per share.
The London-based company is one of the world's largest brewers, with brewing interests and distribution agreements across six continents. The group's portfolio includes brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch. The group is also one of the world's largest bottlers of Coca-Cola products.
The acquisition would be SABMiller’s biggest to date, and would give it approximately half of Australia’s beer market.
In a statement released today, SABMiller said: “SABMiller believes that the proposal put to the Foster's board is attractive and should be put to Foster's shareholders. As there has been no willingness to engage in relation to SABMiller's proposal on the part of the Foster's Board, SABMiller has decided to make an offer to Foster's shareholders directly.”
In May this year, Foster’s spun off its wine unit, Treasury Wine Estates, in order to focus on its beer business, which is struggling to claw back market share losses.
