This Day On The Street
Continue to site
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

3 Deals to Watch: Australian Beer, Russian Oligarchs & Irish Banks

NEW YORK ( TheStreet) -- The Australian government gave SABMiller a late Thanksgiving gift Friday when it approved the beer giant's purchase of Australia's flagship brewer Fosters's Group for $11.2 billion.

After SABMiller increased its offer for Foster's Group in October to get the company to agree on a merger, in mid-November it cancelled an AUD30 cent merger dividend to shareholders and, instead, added the dividend to the takeover price, pushing the purchase price above $11 billion. SABMiller's second concession boosted its chances of approval by Australian regulators, leading regulatory cheers on Friday heard from Sydney to Milwaukee.

SABMiller -- the international beer conglomerate that owns U.S. beer favorite Miller Lite and European classics Grolsch and Peroni -- will pay A$5.40 a share in cash to buy Australia's Fosters. According to the company's website, the addition of Fosters will provide its first entry into Australia, the only continent where it doesn't have existing brands. With Fosters, SABMiller will command a near-50% beer market share down under according to Reuters calculations.

"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," said Australia's Treasurer Wayne Swan in a statement approving the merger.

Previous to board and regulatory approval of the deal, Fosters management rejected SABMiller's first A$4.90 a share takeover attempt in June, saying, "The value (of the bid) was so far from reality, it wasn't worth engaging." SABMiller then took their offer to buy the company directly to shareholders in a hostile takeover attempt this summer. The twice increased purchase price now stands at A$5.40.

SABMiller shareholders will vote on the merger on Dec. 1. For the largest beer deal of the year to be complete, 75% of shareholders will have to approve the merger.

In a November statement, SABMiller said, "If approved by shareholders at the relevant scheme meetings later this year, SAB Miller continues to expect the acquisition to be completed before the end of 2011."

In October, the Brazilian news agency IG reported that Anheuser-Busch InBev (BUD) is interested in buying SABMiller for as much as $80 billion according to anonymous sources. That merger would put InBev, the world's largest beer maker, together with SABMiller, the second largest.
1 of 2

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
IRE $14.54 0.00%
HBC $0.00 0.00%
BUD $124.18 0.00%
DIS $103.26 0.00%
PRU $77.64 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs