The biggest Colombian brewer, Bavaria, confirmed on December 20 it had paid $567.8 million to Venezuelan Empresas Polar to buy 24.6 percent stake in Peru's leading brewer, Union de Cervecerias Peruanas Backus & Johnston SA, known as Backus. With that purchase, Bavaria increases its stake in Backus to 49.1 percent.

"Bavaria acquires the shares of all of Polar's subsidiaries, with 19.3 million Class "A" shares, as well as Polar's minority participation in two of Backus' shareholders ... The total price paid by Bavaria was $567.8 million ... or $27 per share," Bavaria said in a statement, saying it would pay Polar half in cash and the other half in a year.

The Colombian firm, which bought 24.5 percent of Backus for some $420 million in July, added it would launch a public offer to minority shareholders.

Bavaria had squared off against Polar for months over the Venezuelan company's accusations that Bavaria and Venezuela's Cisneros Group had illegally teamed up to take control of Backus.

Bavaria said it would take on loans of up to $150 million from Colombian and international banks for loans it holds that come due this month and in January 2003.

23 December, 2002