Australia: SABMiller still declining to comment on interest in Foster’s beer division

SABMiller Plc, the maker of Miller, Grolsch and Peroni beers, has confirmed interest in making acquisitions but has again declined to comment if Australian brewer Foster's is on its shopping list, The Sydney Morning Herald communicated on November, 19.

London-based SABMiller released on November, 18 its first-half profit results which beat estimates on growth in all regions outside Europe, and said it was looking for new deals.

Chief financial officer Malcolm Wyman made the comments during an interview with Bloomberg Television. He declined to comment on Foster's amid growing speculation that SABMiller might bid for its beer division, Carlton & United Breweries.

SABMiller, the world's second-biggest brewer by volume after AB InBev, already has exposure to the Australian market through a joint venture with Coca-Cola Amatil. The joint venture partners have a brewery in New South Wales and produce Peroni and Bluetongue beer. The pair are estimated to have a 10 per cent market share of the local premium beer sector.

SABMiller's adjusted earnings rose 19 per cent to $US1.47 billion in the six months ended September from $US1.24 billion a year earlier.

Profit increased in four out of five continents, driven by volume growth in Africa and China, higher prices and the strength of the company's major operating currencies against the dollar.

The Foster's board announced earlier this year its intention to pursue a demerger of its beer and wine operations, with the corporate split to be struck next year. The demerger process may attract buyers for either division. SABMiller is considered a leading candidate to purchase CUB.

19 November, 2010