Topic Archives: Fosters Group LTD

Posted in Beer News

Big Beer Buying Big Beer. SABMiller To Takeover Fosters

News from just 1 hour ago.   Fosters Group Ltd. has agreed to sell to SABMiller, a rival, for over $10 million;

According to Wall Street Journal:

The deal appears mainly to be about running Foster’s better and more efficiently by folding it into the global juggernaut that is SABMiller. Analysts have estimated that the combination could produce some A$150 million in cost savings a year.

Thats $5.53 a share of the Fosters stock.

All this boils down to is big beer buying big beer.

Via: NYTimes, Fosters has a full 50% of the market share of the beer industry in Australia.  I think we knew that from the commercials. (joke.)

With an acquisition of Foster’s, SABMiller will gain exposure to market with high margins, albeit sluggish growth. Foster’s has a 50 percent share of the Australian industry, with 7 of the top 10 brands, including the No. 1 beer, Victoria Bitter.