E-Malt.com News article: 1679

The German brewer and soft drink producer Brau und Brunnen AG is negotiating with four bidders for the sale of the 55% currently owned by shareholder the HVB Group.

So far, 2003 has been a year of major change in the German beer sector, with Interbrew of Belgium becoming the leading player there following its recent acquisitions of Spaten and Dinkelacker, and Interbrew has also been mentioned as a potential buyer of B&B - although the comapny itself has distanced itself from these rumours.

While no names have as yet been revealed, B&B spokesman Udo Dewies yesterday confirmed that four companies were in advanced talks regarding the acquisition of the 55 per cent stake in the drinks group currently owned by the HVB Group.

"We are talking with two strategic and two financial investors, and we are convinced that the deal will likely be closed within this year," Dewies told the press.

He declined to comment on whether either of the trade bidders was a foreign brewing group such as Interbrew, although he did confirm earlier rumours that the Radeberger Brewery owned by the Oetker group had expressed an interest in the stake.

Brau & Brunnen’s beer unit is seen as a good fit with Radeburger, and a combination with Germany’s number four brewer – and owner of the Jever brand – would certainly help Radeberger strengthen its own position at a time of intense consolidation in the industry.

Erstwhile market leader Holsten could also be interested in B&B, although the logic is less clear cut for such move. Holsten has made no secret of the fact that it needs to grow to survive, but its plans are more likely to involve a tie-up with a major international group rather than a simple extension of its domestic business.

Heineken is another company which could be interested in increasing its presence in the German market – it currently has a partnership with Carlsberg and a minority stake in the Paulaner brewery to its name there – although its most recent expansion plans have focused on emerging rather than mature markets.

One factor which is also likely to limit interest in the company is Dewies insistence that any new owner would maintain Brau & Brunnen’s two main business streams, beer and soft drinks. This, for example, is likely to rule out a bid from Cadbury Schweppes, which is a major player in the soft drinks sector in Germany and a former partner of B&B, but which would be unlikely to want the brewing business.



15 October, 2003