SABMiller has agreed to acquire Australia’s Foster's Group for approximately A$9.9 billion (£6.5 billion).
London, UK-based SABMiller said the acquisition is consistent with its strategic priorities and will provide it with exposure to Australia's strong economic growth prospects, as well as cementing its position in the Australian beer industry.
Melbourne-based Foster’s is Australia’s biggest brewer; and acquiring it will give SABMiller access to roughly half of the Australian beer market.
The Australian company has a portfolio of well-established brands including VB, Carlton Draught, Corona, Crown Lager, Pure Blonde, Carlton Mid and Carlton Dry. It is also the largest cider producer in Australia.
SABMiller is one of the world's largest brewers, with a portfolio that includes brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. The company is also one of the world's largest bottlers of Coca-Cola products.
Commenting on the agreement, SABMiller's chief executive Graham Mackay said: "We are pleased that we have reached agreement on a recommended transaction to be put to Foster's shareholders. Foster's will become an important part of our business, and through the application of our commercial capabilities and global scale, we expect to build on the initiatives that Foster's management has put in place, further enhancing Foster's performance and creating value for our shareholders.”
He continued: "Foster's has a long-standing and proud reputation as one of the leading companies in Australia. We look forward to working with Foster's employees and other stakeholders to ensure the success of Foster's in the future as the largest brewer in Australia with an outstanding portfolio of brands."
The takeover, SABMiller’s largest to date, is expected to close by the end of the year.
