SABMiller may buy Foster's beer ops for $10.9 billion: report

LONDON Sun Aug 22, 2010 5:44pm EDT

Bottles of Fosters beer are seen in a refrigerator at a liquor store in Melbourne February 16, 2010. REUTERS/Mick Tsikas

Bottles of Fosters beer are seen in a refrigerator at a liquor store in Melbourne February 16, 2010.

Credit: Reuters/Mick Tsikas

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LONDON (Reuters) - SABMiller (SAB.L)(SABJ.J), the world's second-largest brewer, is considering buying the beer operations of Foster's Group FGL.AX, Australia's biggest brewer, for about 7 billion pounds ($10.9 billion), the Sunday Times reported.

SABMiller is planning to buy Carlton & United Breweries, the beer making part of Foster's, the paper said.

A spokesman for SABMIller declined to comment.

Foster's could attract takeover bids of up to $10 billion from suitors including SABMiller and Japan's Asahi Breweries (2502.T), after a long-awaited decision to split off its struggling wine business, Reuters reported in June.

Carlton & United Breweries, run by former navy weapons' engineer John Pollaers, generates around 85 percent of Foster's group earnings and has a profit margin of 38.5 percent.

SABMiller, the maker of Peroni and Miller Lite, gets about 85 percent of its profits from the emerging markets of Latin America, Africa and Asia.

(Reporting by Julie Crust; Editing by Jon Loades-Carter)

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Comments (2)
Sternberg wrote:
We are going to end up with OneWorldBrewing Co. Symbol OWB.

Aug 22, 2010 9:31am EDT  --  Report as abuse
Or at least two players, InBev and SAB

Aug 22, 2010 10:32am EDT  --  Report as abuse
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