Asahi Offers AB InBev $2.9 Billion For Brands
February 11 2016 - 3:02AM
Dow Jones News
(FROM THE WALL STREET JOURNAL 2/11/16)
By Tripp Mickle and Atsuko Fukase
Anheuser-Busch InBev NV is moving toward selling the Peroni and
Grolsch brands to Asahi Group Holdings Ltd. in a deal designed to
help the Belgian brewer close its takeover of SABMiller PLC.
The company said Wednesday it received a binding offer from
Japan's Asahi valued at about $2.9 billion in cash. The potential
sale of Peroni, Grolsch and U.K. craft brewer Meantime, which are
owned by SABMiller, is aimed at helping AB InBev secure European
regulatory approval for its roughly $108 billion acquisition of
SABMiller.
If AB InBev accepts Asahi's bid, the deal would close after the
SABMiller takeover is completed this year, as expected. The
SABMiller agreement, announced in November, would create a brewing
behemoth with about 30% of the global beer market. It requires
regulatory approval in a host of markets, including Europe, the
U.S., China and South Africa.
The deal would be Asahi's biggest overseas acquisition and
largest acquisition in Japan's beverage and liquor industry since
Suntory Holdings Ltd. bought Beam Inc., owner of Jim Beam, for
about $13.6 billion in 2014.
Asahi's binding was offer presented to AB InBev in a strategic
effort to outflank competitors and private-equity firms vying for
Italy's Peroni and the Netherlands' Grolsch in an auction process
that began early this year, a person familiar with the process
said.
The deal would increase Asahi's global market share by volume to
1.9% from 1.5% and make it the world's ninth-largest brewer,
according to industry research firm Plato Logic.
Acquiring the brands would give the Japanese brewer a bigger
footprint outside its home country, where a shrinking and aging
population and tough competition have cut into sales.
The company sees an opportunity to bundle Asahi Super Dry, its
signature brand, with Peroni, Grolsch and Meantime to create a
stable of high-end beers. Peroni, Grolsch and Meantime combine for
operating profit in Italy, the Netherlands and the U.K. of more
than $80 million, according to Asahi.
Heineken NV and Carlsberg A/S, the world's third and fourth
largest brewers by volume, respectively, on Wednesday brought some
cheer to shareholders.
Heineken raised its dividend by 18% and reported a 25% increase
in net profit in 2015 to $2.1 billion behind strong sales in Asia,
Mexico and Brazil.
Carlsberg reported a surprise profit for the fourth quarter of
about $12 million, down from around $25 million during the same
period a year earlier, but better than the loss of roughly $38
million that analysts expected.
(END) Dow Jones Newswires
February 11, 2016 02:47 ET (07:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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