HEIA Heineken

   (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)

Heineken (EU:HEIA)
Historical Stock Chart
From Mar 2024 to Apr 2024

Heineken (EU:HEIA)
Historical Stock Chart
From Apr 2023 to Apr 2024