LONDON 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)