British-based brewing company SABMiller has been avidly pursuing Foster's, including a bold move to snatch up Australian beer maker in August with a hostile takeover offer of $9.51 billion Australian ($9.68 billion US), but the Aussies didn’t go for it.
So the persistent SABMiller sweetened its proposal to A$9.9 billion, which was enough to finish things off and seal the deal for the Foster's board, according to Agence-France Presse.
Foster’s and its many beer brands can now be served up by company execs alongside SABMiller’s Grolsch, Pilsner Urquell, and Miller Genuine Draft.
As the Sydney Morning Herald notes, "Foster's Australian beer brands include VB, Cascade, Crown Lager and Carlton Draught, and it holds the Australian rights to foreign brands Asahi, Corona and Stella Artois."
"We are pleased that we have reached agreement on a recommended transaction to be put to Foster's shareholders," SABMiller chief executive Graham Mackay said in a statement.
"Foster's has a long-standing and proud reputation as one of the leading companies in Australia. We look forward to working with Foster's employees and other stakeholders to ensure the success of Foster's in the future as the largest brewer in Australia with an outstanding portfolio of brands.”
Foster's currently employs 2,300 people, whose fate will hang in the air until the takeover is finalized, as expected by year-end.
Foster’s recently split its beer and wine divisions, with its beer brands organized under the Carlton United Brewers banner.
The Anglo-South African giant that is SABMiller has been determined to expand globally. Its beers can be found in 75 countries now and it remains a major bottler of Coca-Cola, according to AFP.
Now, its' biggest ever purchase will "give it access to about half of the Australian beer market," as Bloomberg reports.