US group may make counter bid for S&N
Feb 25 2008 by Iain Laing, The Journal
BUDWEISER brewer Anheuser- Busch is considering making a counter bid for beer and cider group Scottish & Newcastle.
The US group, which is the world’s third largest beer maker, is said to be poring over S&N’s books with a view to possibly trumping the £7.8bn agreed offer from Carlsberg and Heineken.
Fellow US brewing giant SABMiller last week dashed speculation that it was planning a rival bid after rumours that it was plotting an 850p-a-share offer, which would have valued S&N at £8.2bn.
Anheuser is thought to be eyeing up international expansion opportunities, in particular emerging markets such as Russia, where S&N has an established joint venture, called BBH.
S&N, which has nearly 200 staff in the North-East making Newcastle Brown Ale, last month finally agreed to be taken over by Carlsberg and Heineken in an offer worth 800p a share.
The takeover saga has so far been tense, with Carlsberg and Heineken having raised their offer price three times before gaining the board’s backing.
The European suitors had been pursuing S&N since October and plan to carve up the business when the deal is completed.
Danish firm Carlsberg agreed to take on S&N’s stake in BBH, their fast-growing 50/50 joint venture in Russia and the Baltics, as well as the firm’s operations in France, Greece, China and Vietnam.
Dutch giant Heineken, meanwhile, would become the UK’s leading brewer after taking on S&N’s domestic business, as well as bolstering its position in several European markets.
S&N revealed the tough market faced by the industry in the UK last week with an 8% fall in domestic profits during 2007 due to the wet summer and impact of the smoking ban.
