SABMiller Plc, the world's second largest brewer, agreed on May 14 to buy a majority stake in Italy's family-owned Peroni for up to 246 million euros ($283 million) in its first move into Western Europe, Reuters reported.

The group which bought U.S. brewer Miller last July for $5.6 billion and makes Pilsner Urquell, Miller Lite and Castle beers, said it expected to hold 80-100 percent of Peroni, maker of Nastro Azzurro beer, over the next three to five years. SABMiller said in a statement its initial stake would be between 51 percent and 60 percent. A 60 percent stake would mean an investment of 246 million euros and put Peroni's enterprise value at 563 million euros.

SABMiller, with operations in Africa, the United States, eastern Europe and China, added that the transaction was not subject to any conditions and that closing of the deal was expected within three weeks. The group sees operational synergies leading to cost savings of not less than nine million euros by the end of the third full financial year.

"Italy is one of only two Western European markets to be experiencing real volume growth, at some three percent, well ahead of the regional trend," said SABMiller Chief Executive Graham Mackay in a statement.

14 May, 2003