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Spire comments on the brewing battle for Asia-Pacific Breweries

27 July 2012
Channel NewsAsia – Singapore Tonight

Spire comments on the brewing battle for Asia-Pacific Breweries

The bidding battle for control of Singapore conglomerate Fraser and Neave’s (F&N) prized business unit, Asia-Pacific Breweries, took a new turn when Heineken extended the buyout offer by another week. The extension to consider the offer till 3 August created ripples within the industry, with experts anticipating more bids coming in. Leon Perera, Chief Executive Officer of Spire Research and Consulting, was invited to share his perspective on this episode on Channel NewsAsia – Singapore Tonight.

The buy-out offer by Heineken for Asia-Pacific Breweries was extended till 3 August 2012. The board at F&N was reviewing Heineken’s offer for outright ownership of Asia Pacific Breweries.

The extension got industry experts anticipating that new bidders may enter the fray.

In Perera’s view, the recent development to extend the offer was an attempt by F&N to attract more bidders and also exert pressure on Heineken to increase the offer price. He added that the move for an extension could not realistically have been rejected by Heineken.

Other bidders who are keen on APB are ThaiBev and Japanese brewer Kirin. However, these potential bidders would have to shell out a huge sum to take full control of F&N’s APB division, which also controls the Heineken brand in China and Vietnam. Industry insiders anticipate that both ThaiBev and Kirin are still keen but are balking at the hefty price tag needed to outbid Heineken.

The bidding war has generated interest as the winning bidder would gain a significant foothold in the Asia Pacific beer market, one of the last few growth markets for the global beer industry.

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