SABMiller agrees to buy Grolsch

27 August, 2008
Page 7 
SABMiller has agreed a deal to buy Dutch brewer Grolsch for €816 million, as consolidation across western beer markers gathers pace.

SAB said it would offer Grolsch shareholders €48.25 per share, an 84 per cent premium on the Dutch brewer's average closing price.

The move is the latest in a new round of brewing industry consolidation, following last month's merger between Molson Coors and SAB in the US, and the proposed takeover of Scottish & Newcastle (S&N) by Heineken and Carlsberg.

Both SAB and Grolsch boards said they supported the deal, in marked difference from the increasingly ugly battle over S&N.

Grolsch has a strong position in western European beer markets, but SAB said it wanted to expand the brand into emerging markets such as Latin America and Eastern Europe.

Graham Mackay, chief executive of SABMiller, said the deal would build on Grolsch's 400-year heritage by establishing "new positions in the most important emerging beer markets around the world".

Ab Pasman, Chief Executive of Grolsch, said: "When we were asked to consider SABMiller's proposal, the key question was if greater value could be achieved .

" This appeared to be the case. We believe SABMiller's intended offer delivers benefits to all our stakeholders."