Foster's circled by possible buyers

  • Thursday 10 June 2010

Australian drinks giant Foster's is being courted by potential investors from China and Europe, say reports.

According to the Financial Times, two Chinese companies are interested in the company, including Bright Food – a huge food and drinks conglomerate – and the Tsingtao beer company.

Foster's has been surrounded by speculation after announcing last month that it would split its beer and wine divisions in a ‘demerger’.

Bright Foods is reportedly looking to become a global player in, among other sectors, the wine industry. Reports suggest it would bid for this sector of the Foster’s business.

Although reports of Tsingtao’s interest in Foster's beer division were downplayed by the Financial Times, a recent story in the Beijing-based Economic Observer suggests the company is considering a bid.

Another likely bid for the beer operation could come from SABMiller in the UK.

It was named as a potential investor two years ago, when Foster's announced a AUS$600-$700m write-down of its wine assets.

It was again cited by the FT last week as a potential bidder.

Foster's has refused to comment on the reports.

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