Belgian brewing giant Interbrew said on October 3 it was strengthening its position in eastern Europe by acquiring Serbia's main brewery Apatin for a total of 326.9 million euros ($383.2 million), according to Reuters. The deal is one of the largest foreign investments in Serbia since reformers ousted Slobodan Milosevic in 2002 and will give Interbrew, whose brands include Stella Artois and Becks, control of a third of the market in the countries of former Yugoslavia.

“Further to the Strategic Partnership entered into on 11 September 2003, Interbrew is now holding a controlling stake of 50.1% of Apatin's shares. A binding and irrevocable public offer for all remaining outstanding shares was launched at an offer price of 167.64 euro per share. The offer period will close on 31 March 2004,” said Interbrew on October 3, 2003.

The move by the world's third-largest brewer also highlights strong interest in the region by leading brewers, coming a day after Denmark's Carlsberg said it would pay 26 million euros for the outstanding 49 % of Serbia's Pivara Celarevo brewery. "We want to be present in both mature and emerging markets and the central European market has potential," Interbrew spokesman Corneel Maes said.

Last month Interbrew said it is to buy the brewer behind the world-famous Loewenbrau brand making it the largest beer company in Germany. In a statement, Interbrew said it had bought a 50.1 % stake in Apatin and was launching an offer for the remainder at 167.64 euros per share. The offer will close on March 31, 2004.

Interbrew and Apatin last month said they had signed a strategic partnership agreement under which Interbrew would increase its stake to 50 % through a capital increase and the purchase of a 25 percent stake that management had a right to sell. Maes said the buyout period was relatively long to give the 6,500-7,000 local retail investors enough time to subscribe to the bid. Interbrew, which bought 9.37 % of Apatin in May 2002, is already present in Croatia, Bosnia and Montenegro. Shares in Interbrew were 0.4 % higher at 20.95 euros.

03 October, 2003