The CEO of Australian brewer Foster’s has defended the decision to accept a $12 billion takeover deal which will see the company head into foreign ownership for the first time in its 150-year history. Foster’s, which controls leading beer brands including VB, Crown and Carlton Draught, has accepted an improved takeover deal from Anglo-South African brewing giant SABMiller.
SAB Miller, which produces rival brands like Grolsch and Miller Lite, will take control of the company in a deal worth $12.3 billion, or $5.53 per Foster’s share. Foster’s rejected a hostile bid from SABMiller in August but the international brewer improved its offer by $400 million. Foster’s says the deal also delivers certain cash proceeds in an uncertain global economic environment and high-equity market volatility. The world beer market is now dominated by just a handful of brewing giants, but SABMiller chief executive Graham Mackay says individual brands that some people have been drinking for generations are safe.
Foster’s Group (FGL) has agreed to an improved takeover offer from SAB Miller.SAB Miller is now offering $5.53 a share, comprising 510c cash and a 30c capital return, as well as FGL’s 13.25c dividend. The takeover is subject to a number of conditions including approvals from shareholders, FIRB, the ACCC, the ATO as well as a supporting Independent Expert’s Review. FGL is up 7%. .