Asahi, SAB Eye Foster's Beer
- 14 years ago
Beverage giants Asahi Breweries and SABMiller are reportedly considering buying the Foster Group's beer operations, but have not yet made any formal offers.
Long-running interest in the Australian brewer's beer business resurfaced Monday after the Sunday Times reported that SABMiller was eyeing the unit, valued at more than $10 billion.
Japan's Asahi refused to comment, but company president Naoki Izumiya said earlier this month he expects to have $9.2 billion for acquisitions over the next five years, with eyes on Asia and Oceania.
Number two Asahi and its rival brewers have been scrambling to make acquisitions and cut their reliance on the local beer market, which has lost 15 percent in volume in the past decade due to a sputtering economy and a shrinking population.
Asahi, SABMiller and other beer producers have been interested in the unit, ever since Foster's said it would split its wine and beer units next year.
Analysts say most of the value is in its beer business, after a string of writedowns in its wine operations.
Long-running interest in the Australian brewer's beer business resurfaced Monday after the Sunday Times reported that SABMiller was eyeing the unit, valued at more than $10 billion.
Japan's Asahi refused to comment, but company president Naoki Izumiya said earlier this month he expects to have $9.2 billion for acquisitions over the next five years, with eyes on Asia and Oceania.
Number two Asahi and its rival brewers have been scrambling to make acquisitions and cut their reliance on the local beer market, which has lost 15 percent in volume in the past decade due to a sputtering economy and a shrinking population.
Asahi, SABMiller and other beer producers have been interested in the unit, ever since Foster's said it would split its wine and beer units next year.
Analysts say most of the value is in its beer business, after a string of writedowns in its wine operations.