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SABMiller Reaches Out for Half of Baltika
Diageo and SABMiller, two of the world most powerful drinks companies, intend to acquire Scottish & Newcastle (S&N) brewer for $18 billion, The Financial Times reported. If clinched, the deal will make SABMiller a leader on the beer market of Russia - S&N owns 50 percent in BBH, the owner of Baltika Breweries.
SABMiller will first acquire S&N for £9 billion ($18 billion), then Diageo will buy out the Britain’s brewering business from S&N that consists of Newcastle Brown Ale and John Smith`s. SABMiller will retain S&N's international assets, including 50 percent in the venture with Carlsberg – Baltic Beverages Holding (BBH), as well as big stakes in Indian United Breweries and Chinese Chongqing Brewery.
SABMiller’s interest in BBH is no news for the market of Russia. One of the major beer dealers spoke about it far back in winter. Same as at that time, the parties have declined to comment on the information.
Britain’s Scottish & Newcastle leads in 15 countries of Europe. In Russia, it owns 50 percent in BBH. Together with Carlsberg, BBH is the owner of Baltika Breweries (10 brewing plants; market share of around 36 percent).
In view that today’s subsidiary of SABMiller, TransMark covers 5.6 percent of the beer market in Russia, the deal with extend SABMiller’s presence here to 42 percent. For comparison, the second leader, Sun Inbev, accounts for 18.9 percent of the market today.
www.kommersant.com
All the Article in Russian as of Apr. 24, 2007
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