Japanese brewer Asahi to stay away from bidding for SABMiller’s East Europe assets

Tokyo businessmen toast with mugs of Asahi Breweries' beer after their office hours at a beer garden at the rooftop of Nihonbashi-Mitsukoshi department store in Tokyo July 30, 2013. REUTERS/Issei Kato

Asahi Group Holdings Ltd will not bid for the Eastern European assets that SABMiller PLC is selling to appease anti-monopoly regulators, the president of Japan’s biggest brewer said on Tuesday.

“We have been studying them but we won’t raise our hand to buy,” Akiyoshi Koji, who became president in March, said in an interview.

Instead, he said Asahi will focus on raising sales of the Peroni, Grolsch and Meantime beer brands that it agreed to buy from SABMiller last month for 2.55 billion euros ($2.89 billion).

Asahi is betting on those brands to significantly broaden its presence in Europe. Previously,Asahi‘s overseas expansion focused on Asia and Oceania, such as the purchase of New Zealand’s Independent Liquor in 2011 for NZ$1.5 billion ($1.02 billion), and 19.9 percent of China’s Tsingtao Brewery in 2009.

Koji also said Asahi plans to eventually sell its Super Dry beer in Europe through its SABMiller acquisition. Super Dry is Asahi‘s and Japan’s biggest-selling beer.

The acquisition is conditional on Anheuser Busch InBev SA gaining the approval of anti-monopoly regulators to take over SABMiller.

To gain approval, SABMiller is selling its businesses in Poland, the Czech Republic, Slovakia, Hungary and Romania, as well as brands including those destined for Asahi.

While Asahi will not buy those businesses, it will still seek acquisition opportunities worldwide, Koji said. The brewer can take on additional debt of up to 300 billion yen ($2.74 billion) without hurting its credit rating, he said.

“Also due to the negative interest rate policy (of Japan’s central bank), we can issue bonds with low interest,” he said.

Asahi is unlikely to make major bets on emerging economies such as South America though they have growth potential, Koji said.

“We are looking at the United States and Europe, where we may not see strong growth but we can count on steady growth,” he said

Koji said he did not feel threatened by AB InBev-SABMiller, which will command one-third of the world’s beer market, as Asahi wants to focus on premium brands.

Rather, he said he was concerned about AB InBev-SABMiller’s purchasing power of main beer ingredients barley and hops.

“We need to make sure we have sustainable access to ingredients,” he said.

Also read:

China Resources Beer plans to buy SABMiller’s 49% stake in Snow for $1.6b

Philippines’ San Miguel in race to acquire SABmiller’s Grolsch and Peroni

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.