Foster’s, one of Australia’s most iconic beer brands, has been sold to Anglo-South African brewery giant SABMiller, in a deal worth $12.3 billion.
The deal means the owner of the VB, Crown, Cascade and Carlton Draught beer brands will be owned by a foreign company for the first time since its founding some 150 years ago.
In a release to investors, Foster’s said SAB Miller will acquire the company for $5.53 per share and the deal “reflects compelling value for Foster’s shareholders and delivers certain cash proceeds in an uncertain global economic environment with high equity market volatility.”
“This is a compelling proposal from SABMiller and represents the value inherent in this iconic Australian company and in its brands and people,” Chairman David Crawford said.
According to ABC News Breakfast, Foster’s CEO John Pollaers spoke this morning in defense of the deal, saying it would mean new opportunities for the business and that he didn’t expect to see any opposition from regulators or the government.
“Ultimately this is a great deal for a company and frankly a great deal for the staff and our customers,” he told ABC News Breakfast.
He said the majority of jobs would be safe, but admitted some losses would occur “at the margins.”