Molson Coors's Rumoured Acquisition Of Foster's Unlikely To Prove Successful

North American beer company Molson Coors is rumoured to be launching a joint bid with Mexican brewer Grupo Modelo for the newly demerged Foster's Group. Australian alcoholic drinks company Foster's has recently spun off its wine business Treasury Wine Estates into a separately listed company in May, sparking speculation about a possible acquisition for Foster's, which includes its core Australian beer business Carlton & United Breweries (CUB). Given that Molson Coors's market capitalisation is well below the market valuation for CUB and that Belgium-based beer group Anheuser-Busch InBev (AB InBev), the majority shareholder in Modelo, is likely to block an acquisition by Modelo, we believe Molson Coors is unlikely to acquire Foster's beer business.

To read the full article, please choose one of the following options: