Colombia: SABMiller sells its water business to focus on beer

SABMiller plc’ s Colombian subsidiary Bavaria S.A. (“Bavaria”) has agreed to dispose of its Agua Brisa bottled water business and assets, the giant’s official site announced on August 7.

The business will be acquired jointly by Coca-Cola FEMSA and The Coca-Cola Company, for a consideration of USD92,000,000.

It is reported that the disposal of Agua Brisa is subject to approval by the Colombian competition authorities and other customary pre-closing conditions, with closing of the transaction expected in late 2008 or early 2009. The parties have also agreed customary arrangements regarding the performance of the Business between signing and closing.

Karl Lippert, president of Bavaria, commented: “The disposal of the water business will enable Bavaria to focus on its core strength, the brewing and distribution of beer and malted beverages. After closing, the transfer of assets and the commercial operation will be subject to a transition arrangement of several months, during which Bavaria will still be producing, selling and distributing Brisa.”

Bavaria is the largest beverage company in Colombia. Its brands include: Águila, Águila Light, Póker, Costeña, Pilsen, Club Colombia, Brava, Barena, Costeñita, Cola & Pola and Pony Malta.

12 August, 2008