This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Stocks in this article: DIS WFC PRU BUD IRE HBC

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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,642.82 +285.95 1.65%
S&P 500 2,047.43 +34.54 1.72%
NASDAQ 4,730.1960 +85.8840 1.85%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs