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SABMiller Eyes Foster's Beer Arm: Report

SABMiller, the world's No. 2 brewer, is looking at buying the beer operations of Foster's, the biggest brewer in Australia, reports say.

LONDON (

TheStreet

) --

SABMiller

, the world's No. 2 brewer, is looking at buying the beer operations of

Foster's

, the biggest brewer in Australia, reports say.

The

Sunday Times of London

said SABMiller could spend up to $10.9 billion to acquire Carlton & United Breweries, Foster's beer-making arm.

In addition to SABMiller,

Asahi

, Japan's No. 2 brewer, is looking at Foster's beer operations, which are valued at more than $10 billion,

Reuters

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reports.

Neither SABMiller or Asahi have made formal offers.

Analysts also say Foster's beer business is an attractive target for drinks firms such as

Molson Coors

(TAP) - Get Molson Coors Beverage Company Class B Report

, which owns a 5% stake in Foster's, and

Coca-Cola Amatil

,

Reuters

reports.

Earlier this year, Foster's said it would split its beer unit from its wine business.

-- Written Joseph Woelfel in New York.

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