Japan’s Asahi confirms bid for SABMiller’s brands (Update)

Condensation collects on a glass of Asahi beer at a bar in Singapore in this October 23, 2015 file photo. Japan's Asahi Group Holdings Ltd said on January 12, 2016 it is exploring various possibilities after media reports that it will submit a bid to buy Grolsch and Peroni, two beer brands owned by SABMiller PLC, for as much as $3.4 billion. REUTERS/Tim Wimborne/Files

TOKYO/BRUSSELS: Asahi Group Holdings Ltd has offered to buy SABMiller’s Peroni, Grolsch and Meantime beer brands for 2.55 billion euros (RM11.84bil), it said on Wednesday, as the Japanese company seeks to offset slow growth at home.

The sale, being conducted by Anheuser-Busch InBev, is aimed at securing antitrust approval for its US$100bil (RM464bil)-plus takeover of SABMiller, agreed last year.

Asahi is Japan’s biggest brewer with a 38% market share, but the company has sought growth outside of Japan where a shrinking population and the increasing popularity of wine have weighed on beer sales over the past two decades.

“Through this proposed acquisition, Asahi aims to expand its growth platform in Europe and become a global player with a distinct position,” Asahi said in a statement.

The offer is on a debt and cash free basis and hinges on the approval of AB Inbev’s purchase of SABMiller by the European Commission, which acts as a competition watchdog in the 28-member European Union.

Asahi and AB InBev said they will now begin relevant employee information and consultation processes. AB InBev has agreed to a period of exclusivity with Asahi during this period.

An earlier line-up of bidders for Peroni and Grolsch beers included US private equity firm KKR & Co LP; Fraser and Neave Ltd, which is part of Thai Beverage PCL; and European private equity firms PAI Partners SAS and EQT Corp.

AB InBev has already agreed to sell SABMiller’s majority-stake in US venture MillerCoors to Denver-based venture partner Molson Coors for US$12bil (RM49.6bil). - Reuters