Britain-based brewer SABMiller has launched a hostile takeover bid for Australian beer giant Foster's. The offer is worth around A$9.5 billion (US$10 billion) after an initial approach was rejected in June.
SABMiller, the maker of beers Grolsch and Miller Lite, said its renewed offer was unchanged at A$4.90 per Foster's share.
'SABMiller believes that the proposal put to the Foster's board is attractive and should be put to Foster's shareholders,' SABMiller said in a statement.
The maker of Foster's Lager had yet to respond to the hostile bid but in June said the offer 'significantly undervalues' the company.
Foster's, which owns Australia's largest brewer Carlton and United Breweries, recently split its beer division from the underperforming wine assets which had suffered because of a grape glut and soaring local dollar.
The prospect of a takeover of Foster's, one of Australia's best known brands, had been anticipated since the demerger and the move follows consolidation within the Australian drinks industry.
SABMiller's pursuit of the Australian company is meanwhile in line with its strategy to create a global spread of businesses. It has noted that Australia has a strong, wealthy and growing economy that is well positioned to benefit from continued economic growth in Asia, and has a profitable beer market.
Foster's has meanwhile been battling intense competition in the beer industry, affecting its flagship brands VB, Crown and Carlton Draught. Foster's estimated that the domestic beer market shrank 7% in the second half of 2010.
SABMiller is one of the world's largest brewers and its brands also include Peroni Nastro Azzurro, Tyskie and Blue Moon.
