SABMiller to buy Foster's for $10 bn

Brewing giant SABMiller agreed to buy Foster's Group on Wednesday for an increased price of A$5.10 a share valuing the Australian beermaker at A$9.9 billion ($10.2 billion) to give SABMiller a leading position in the Australian beer market.

As part of the deal, Foster's will pay a return of capital worth A$0.30 a share and also its final dividend for year to June 30 2011. Th.e total value of the deal, including debt, is A$11.5 billion

[caption id="attachment_88903" align="alignleft" width="380" caption="Deal will give SABMiller a leading position in the Australian beer market.Reuters"][/caption]

"We are pleased that we reached agreement on a recommended transaction to be put to Foster's shareholders," said SABMiller Chief Executive Graham Mackay in a statement

The London-based brewer of Peroni, Miller Lite and Grolsch launched its initial cash bid worth A$9.5 billion, or A$4.90 a share, on June 21 and then went hostile by taking the offer direct to shareholders at the same price on Aug 17, but Foster's rejected both approaches as being too low.

More from Fwire

SABMiller says the bid is part of its strategy of creating an attractive global spread of businesses to add to its operations largely in the emerging markets of Africa, Latin America, Asia and Eastern Europe.

Reuters