SABMiller Buying Fosters for $10.2 Billion

FoodProcessing.com
09/22/2011

By Food Processing Staff

On September 21, SABMiller Plc, parent company of MillerCoors, announced it would pay A$9.9 billion ($10.2 billion USD) to acquire Australia's Foster’s Group Ltd. Foster’s shareholders will also get 30 cents a share as part of a previously announced capital return and a 13.25-cent final dividend.

According to reports, this is SABMiller's largest acquisition to date; it will give the London-based company access to nearly half of Australia's beer market.

SABMiller is the world's second-largest brewer by volume. Its initial efforts to buy Foster's were turned down due to Foster's management feeling SABMiller had undervalued the company.

"Foster's has a long-standing and proud reputation as one of the leading companies in Australia," said SABMiller's Chief Executive, Graham Mackay. "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 acquisition is expected to be completed before the end of 2011.