In the latest twist to globalisation, New Zealand's two main breweries will indirectly have the same shareholder.Lion Nathan owner Kirin Holdings, one of Japan's leading beer companies, has taken a shareholding in Singapore's Fraser & Neave, whic
In the latest twist to globalisation, New Zealand's two main breweries will indirectly have the same shareholder.
Lion Nathan owner Kirin Holdings, one of Japan’s leading beer companies, has taken a shareholding in Singapore's Fraser & Neave, which has an indirect shareholding in DB Breweries.
Kirin is paying nearly $US1 billion for the Singapore government’s 14.7% stake in F&N, which in 1931 with Heineken formed Asia Pacific Breweries (formerly Malayan Breweries). (Heineken is the largest shareholder in listed APB with 42.5%.)
The shareholding in F&N was previously held by Temasek Holdings, Singapore’s sovereign wealth company.
"When Kirin approached us with an acceptable offer over a week ago, we decided, on balance, that it was a good opportunity for F&N to work with an established food and beverage company with complementary strengths," said David Heng, Temasek managing director for investments, in a statement.
The move will make Kirin the single largest shareholder in Fraser & Neave, which traces its history back to 19th century Singapore, where it started a soft-drinks business. F&N has since moved into publishing and property, apart from its extensive food and beverage businesses.
Apart from DB, Asia Pacific Breweries has operations in Singapore, Malaysia, Thailand, Vietnam, Cambodia, China, Papua New Guinea, India, Sri Lanka, Laos and Mongolia. It is best known brands are Tiger and Anchor beer.
Kiirin, which has been highly acquisitive in recent years, said the $S1.3 billion ($US950 million) purchase would give it an important foothold in a growing area where it is under-represented.
“This deal will give us a base in southeast Asia, an area where we have been weak,” said Hirotake Kobayashi, Kirin managing director. “The stake is small, at 14.7%, but it is strategically important."
Kirin’s biggest recent move was to buy out the minorities of Australia-based Lion Nathan, which owns Lion Breweries in New Zealand, and merge it with Australian dairy company National Foods.
Kirin also owns about 48% of San Miguel, the Philippines brewer and has several subsidiaries in China, as well as a joint venture in Vietnam.
Mr Kobayashi said. Kirin, which still has to discuss areas of potential co-operation with Fraser & Neave, is particularly interested in seeking synergies with its Australian businesses, which cover dairy products and beverages.
The deal comes in the wake of Kirin’s failed bid to merge with Suntory, another Japanese beer and beverages group. That deal collapsed last year due to differences over the merger ratio.
