SABMiller, the world’s second-biggest brewer, has agreed to buy Dutch rival Grolsch for €816-million in cash to strengthen its position in the fast-growing premium beer market.
The deal is the latest sign of consolidation in the global brewing industry, and comes after Britain’s Scottish and Newcastle rejected an improved £7.3-billion bid from Denmark’s Carlsberg and Dutch group Heineken last week.
London-based SABMiller, which makes Miller Lite, Castle and Peroni beers, said on Monday it was offering €48,25 a share, 84% above Grolsch’s average closing share price over the past month.
At 8.20am GMT shares in Grolsch, best known for its eponymous premier pilsner, were up 77,5% at €47,75. SABMiller shares were down 0,8% at 1 333 pence.
SABMiller said it planned to expand the Grolsch brand across Africa and Latin America, where the premium beer market is still in its infancy, and in the more developed markets of central and eastern Europe.
The offer is endorsed by Grolsch’s board and SABMiller has irrevocable undertakings in support from shareholders owning 37% of the Dutch brewer, SABMiller said.
”Grolsch’s provenance, unique taste profile and existing premium positioning will play a highly complementary role in SABMiller’s international brand portfolio and better position SABMiller to grow market share in the fastest growing segment of the global beer market,” it said in a statement. – Reuters