Foster’s turns down £6bn SABMiller bid
FOSTER’S Group yesterday rejected a A$9.5bn (£6.2bn) cash takeover offer from global drinks giant SABMiller sparking speculation that a bidding war will follow.
SABMiller, which makes Peroni, Grolsch and Miller Lite, has long been seen as the favourite to take over Foster’s, but the Australian brewer is digging in for a higher price.
The indications were that SABMiller would “let the dust settle” after the offer to gauge the reaction from Foster’s shareholders and the market in general. The company is adamant that the offer is a realistic valuation of Foster’s, which sold off its wine business last month.
SABMiller chief executive Graham Mackay said: “Through the application of our commercial capabilities we believe we can improve Foster’s top line growth and enhance its profitability.” Mexican brewing powerhouse Grupo Modelo had been tipped to be the first to table a bid for Foster’s.