Australia approves Foster's sale to SABMiller

A patron lifts a glass of beer in Sydney. A takeover of Foster's has been expected since it split its beer and wine business

Related Stories

The Australian government has approved brewer SABMiller's 9.9bn Australian dollars ($10.2bn; £6.5bn) takeover of Foster's.

It did, however, pose a condition that the company must keep management of Foster's operations in Australia.

UK-based SABMiller has also agreed not to relocate any brewing facilities offshore.

The final step will be a vote by Foster's shareholders on 1 December, which is expected to pass the deal.

"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 Australian Treasurer Wayne Swan in a statement.

Last week, SABMiller raised its cash takeover offer for Foster's to $5.40 a share.

This came after a tax ruling from authorities in Australia to ensure that Foster's shareholders don't lose out because of a capital return tax.

SABMiller said it expects to complete the takeover by the end of this year.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

Copyright © 2017 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.