SABMiller's $10.2-bn acquisition of Foster's gets Australia's conditional approval
25 Nov 2011
The Australian government has approved global brewing and bottling giant SABMiller's A$9.9 billion ($10.2 billion) acquisition of Foster's, however with certain conditions.(See: Foster's finally accepts SABMiller's $10.2-bn takeover offer)
The conditional approval paves the way for Foster's shareholders to vote on the deal on 1 December.
Australian Federal Treasurer Wayne Swan approved the deal but imposed conditions including requiring SABMiller to keep brewing operations in Australia and not to relocate any brewing facilities offshore to produce beer for Australian domestic consumption.
Among other conditions, SABMiller is also required to continue investing in Foster's. "SABMiller has agreed to a number of undertakings which recognise the significance of Foster's to our economy and to our community, and support Australian jobs," said Swan.
"In addition to Foster's undertakings, I have taken into account SABMiller's plans to strengthen Foster's brand portfolio and work with its local employees to bring its global scale and expertise to the business.
"I also note SABMiller's current intention that Foster's operational employees will remain in their existing roles on the same or substantially similar conditions to those which they currently enjoy," he added.