This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Consumer Stock Takeovers: Deals and Targets

Molson Coors Brewing (TAP) and Mexico's Grupo Modelo are reportedly in talks to make a joint bid for Foster's, according to June 3 reports, though other bidders may yet step forward for the Australian beer maker.

Foster's announced last year its intentions to divest its wine operations. The struggling business unit has been viewed as a deterrent to prospective buyers.

"It is 100% likely that they (Molson and Modelo) have been contemplating that kind of thing, but only in the sense that any major global brewer is always going to be looking at potential targets," Angus Gluskie, a portfolio manager at White Funds Management in Sydney, which holds Foster's shares, told the newswire. "But they have to make a decision on whether it is a good time or a bad time to act on it. There are a couple of strategic reasons why you may not do it and the Aussie dollar is probably the biggest of them."

Australian sources told Reuters that Foster's had not received a formal bid from Molson and Modelo.

Fosters' attractiveness stems from its high margins -- said to be around 37% for beer, nearly double that global competitors -- and 50% market share in Australia.

SABMiller, the world's second-largest brewer, could also be a likely bidder, according to sources who spoke to Reuters.

Both China's Tsingtao Brewery and Japan's Asahi Breweries have said they are not planning a bid for Foster's.
8 of 15

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CAG $44.56 0.00%
CLX $106.12 0.00%
CL $66.16 0.00%
KMB $107.55 0.00%
PG $79.93 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs