Printer Friendly

Merger offer is nixed by Foster's.

Australia's S.A. Brewing Holdings had its proposed merger rejected by fellow Aussie Foster's Brewing Group, according to a recent report in the Wall Street Journal.

The deal was rejected by Foster's directors because the proposal was not "advantageous" to its shareholders. More specifically, Foster's director, N.R. Clark, said S.A. Brewing's "non-beer businesses are incompatible with the current Foster's businesses and that the S.A. Brewing proposal offers minimal synergies while exposing Foster's to substantial downsides with continuing instability."

The original proposal called for a share exchange between the two companies, with no money changing hands. S.A. Brewing would then assume management of the merged companies and inject over $750 million of equity into the brewery.

The rejection of this offer allowed Foster's to concentrate on building its brewing assets, which analysts said, the company has begun to do. A venture that is seen as an effective Foster's takeover attempt of the smaller Power Brewing Co., in Brisbane, Australia, was announced on the same day as the merger rejection.

The new Foster's proposal called for a joint venture between the two breweries to be called Queensland Breweries Pty, which will have an equal number of directors from Powers and from Carlton & United Breweries, a Foster's division.

Australia's antitrust regulators will examine the proposed merger in the near future.
COPYRIGHT 1992 Business Journals, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:deal between S.A. Brewing Holdings Ltd. and Foster's Brewing Group Ltd.
Publication:Modern Brewery Age
Date:Jun 22, 1992
Previous Article:Wisdom sales up to 11.2% through May.
Next Article:Shiner Bock sales soaring this spring.

Related Articles
Bond Corp. sells brewing interests.
S.A. Brewing purchases wine unit.
Miller completes Canadian deal.
China sells bankrupt brewery to Foster's.
Foster's sells Courage to Scottish & Newcastle.
Interbrew purchases Whitbread beer unit.
Diageo may make bid for Foster's.
British rejection of Bass purchase forces Interbrew to regroup.
Foster's restructuring.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters