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Heineken Acquired Fraser and Neave’s Stake in Asia Pacific Breweries Source:-Reuters
Date:-3-8-2012
Deal Overview• Dutch Company acquired F&N Stakes in
APB for 4.1 billion US dollars• Deal is strategically important for
Heineken for its Pan-Asia footprints• Heineken own 9.5% stake directly in APB
and 65% jointly with F&N ,effective share is 42%
• Type :-Horizontal • Heineken offered S$50 per share• Goldman Sachs is advising F&N while
Credit Suisse is advising F&N
World Beer Market
• Global Beer consumption was 210 bn liters in 2011
• Top four are Anheuser Busch InBev, SABMiller, Heineken, Carlsberg• Top four brewery accounts for more than 50% of
production• This is due to M&A rather than organic growth• Since 1997 the four companies have made a
total of 57 acquisitions amounting to 82 billion EURO
Company Market Share(%)(2010)
Anheuser Busch InBev
23.5
SABMiller 12.5
Heineken 7.5%
Carlsberg 6.7%
Market Share of big 4 breweries
M&A as a Driver of Global Competition in the Brewing
Industry Acquiring Company
Target Company
Combined
INBev Anheuser Busch
Anheuser Busch InBev
Miller South Africa Breweries
SABMiller
M&A in Beer Industry
Year AB InBev SABMiller Heineken Carlsberg Total
1997 152 152
1998 119 119
1999 877 877
2000 2915 563 3479
2001 3810 169 3979
2002 491 223 1164 1878
2003 1210 350 1541 3101
2004 4301 814 510 5624
2005 1827 6262 567 8656
2006 575 262 837
2007 529 529
2008 41173 816 182 5466 47638
20092010
8374434 292
8374726
Note:-Deals Value are in Mln Euro’s
M&A impact on growth of big 4
Breweries
Company 2000 2010 Growth
A-B InBev 5.9 26.0 340%
SABMiller 3.4 14.7 332%
Heineken 7.0 13.6 95%
Carlsberg 4.8 8.0 67%
Turnover in Billion Euro
Group• It ‘s Amsterdam Stock Exchange listed
company established in 1873
• Heineken have global presence with operations in 71 countries
• Heineken’s reputed brands are Amstel, Bira Moretti, Primus, Sagres and many more
• Joint Venture brand includes Anchor, Cristal, Kingfisher and Tiger
Asia Pacific Breweries• APB is Singapore Listed Company
have presence in brewery since 1883
• It is a part of Fraser and Neave which is Pan –Asia consumer group
• Top Brands includes Tiger, Baron’s Strong Brew, Bintang Beer etc
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34.00
34.50
35.00
35.50
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36.50
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37.50
38.00
38.50 HeinekenShare Price
Source:-Amsterdam Stock Exchange
In Euro’s
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0.00
10.00
20.00
30.00
40.00
50.00
60.00 Asia Pacific BreweriesShare Pric...
Source:-Singapore Stock Exchange
Valuation
Strength
Weakness
Opportunity
Threat
1] Strong Brand Name
2] Expertise in Quality Prod.
3] Strong Distribution Network
1] High Distribution Cost
2] Green Field
1] Focus on Asia Pacific
2]Diversification
3] Beers for Women
1] M & A by the Competitors
Cheers..!!