Morning:
13°c
SABMiller tipped to buy Korean brewery
Bill Condie04.02.09
Brewer SABMiller could be in the frame for a $2.5 million (£1.7 billion) acquisition of the South Korean business of Anheuser-Busch InBev.
The Belgium-based maker of Budweiser and Stella Artois is understood to be talking to companies including
London-listed SABMiller, South Korea's Lotte and Japan's Asahi, Bloomberg says. There could also be private-equity interest from Bain Capital and Carlyle, but they could struggle to raise the cash in the current climate.
AB InBev is expecting offers of between $2 billion and $2.5 billion for the Seoul-based Oriental Brewery. If it fetches that, AB InBev would be able to pay almost all the short-term debt component of the $52 billion merger that formed the company last year.
Initial bids for Oriental Brewery are expected by the third week of February. InBev's $7 billion bridging loan, due for repayment in November, has already been cut by $3.5 billion through a bond sale.
Neither AB InBev nor SABMiller would comment.
