Australia’s government approved SABMiller’s A$11.5 billion deal to buy Foster’s Group Ltd under foreign acquisition laws but imposed conditions requiring the company to keep brewing operations in Australia, Business Standard reported.
The government nod is the final regulatory condition to be cleared ahead of the Foster’s shareholders vote set for December 1 which is expected to pass the deal.
The treasurer Wayne Swan, who also approved the acquisition of the remaining 50% of Pacific Beverages now owned by Coca-Cola Amatil, said “SabMiller must keep management of the iconic Australian beer brand in Australia.”
He also said that SABMiller must continue to invest in Foster’s the maker of Victoria Bitter, Carlton Draught and Pure Blonde, and not shift any of Foster’s existing brewing facilities offshore to produce beer for the Australian domestic market. “SABMiller has agreed to a number of undertakings which recognize the significance of Foster’s to our economy and to our community, and support Australian jobs,” Swan said in a statement.
SABMiller expects its biggest takeover deal to end by the end of this year and put it at the head of the Australian beer market with a near 50% share.
The Fosters deal is part of SABMiller’s strategy of creating an attractive global spread of businesses to add to operations largely in emerging markets of Africa, Latin America, Asia and Eastern Europe and also in the United States. SABMiller is the largest brewers with more than 200 brands and some 70,000 employees in over 75 countries.



