Coca-Cola Amatil Won't Buy Foster's Australian Spirits
March 04 2012 - 7:22PM
Dow Jones News
Coca-Cola Amatil Ltd. (CCL.AU), the Asia-Pacific bottler of
Coca-Cola Co.'s (KO) drinks, said Monday it has decided not to take
up its right to buy the Australian spirits business of Foster's
Group Ltd. but may still acquire the brewer's Australian
non-alcoholic drinks business and Fiji Breweries for up to A$70
million.
CCA secured the right to buy the three businesses with the sale
late last year of its 50% stake in Pacific Beverages to partner
SABMiller PLC (SAB.JO), as part of the London-based brewing giant's
acquisition of Foster's. In its full-year results on Feb. 22, the
company said it could spend as much as A$200 million buying the
businesses.
CCA has elected not to proceed with the acquisition of the
spirit and ready-to-drink spirit operations in Australia following
due diligence. As a result of this decision, CCA said it expects to
receive about A$34 million from SABMiller, which will be used to
support its plans to expand its own alcohol operations.
Due diligence is underway on the Australian non-alcoholic drinks
business and the Fiji Breweries and distillery in Fiji and Samoa,
it said, adding it expected to make a decision on whether to push
ahead with an acquisition soon. It estimated the net outlay for the
other two Foster's businesses would likely be A$50 million-A$70
million.
CCA, one of the world's five largest Coca-Cola bottlers, has
operations in Australia, New Zealand, Fiji, Indonesia and Papua New
Guinea that make and sell a range of soft drinks, water, juices and
other drinks. It also distributes the spirits of Beam Inc. (BEAM),
which include products such as Canadian Club and Makers Mark.
-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094;
robb.stewart@dowjones.com
Beam Inc. (NYSE:BEAM)
Historical Stock Chart
From Apr 2024 to May 2024
Beam Inc. (NYSE:BEAM)
Historical Stock Chart
From May 2023 to May 2024