Heineken Acquired Fraser and Neave’s Stake in Asia Pacific Breweries Source:-Reuters

Date:-3-8-2012

Deal Overview• Dutch Company acquired F&N Stakes in

APB for 4.1 billion US dollars• Deal is strategically important for

Heineken for its Pan-Asia footprints• Heineken own 9.5% stake directly in APB

and 65% jointly with F&N ,effective share is 42%

• Type :-Horizontal • Heineken offered S$50 per share• Goldman Sachs is advising F&N while

Credit Suisse is advising F&N

World Beer Market

• Global Beer consumption was 210 bn liters in 2011

• Top four are Anheuser Busch InBev, SABMiller, Heineken, Carlsberg• Top four brewery accounts for more than 50% of

production• This is due to M&A rather than organic growth• Since 1997 the four companies have made a

total of 57 acquisitions amounting to 82 billion EURO

Company Market Share(%)(2010)

Anheuser Busch InBev

23.5

SABMiller 12.5

Heineken 7.5%

Carlsberg 6.7%

Market Share of big 4 breweries

M&A as a Driver of Global Competition in the Brewing

Industry Acquiring Company

Target Company

Combined

INBev Anheuser Busch

Anheuser Busch InBev

Miller South Africa Breweries

SABMiller

M&A in Beer Industry

Year AB InBev SABMiller Heineken Carlsberg Total

1997 152 152

1998 119 119

1999 877 877

2000 2915 563 3479

2001 3810 169 3979

2002 491 223 1164 1878

2003 1210 350 1541 3101

2004 4301 814 510 5624

2005 1827 6262 567 8656

2006 575 262 837

2007 529 529

2008 41173 816 182 5466 47638

20092010

8374434 292

8374726

Note:-Deals Value are in Mln Euro’s

M&A impact on growth of big 4

Breweries

Company 2000 2010 Growth

A-B InBev 5.9 26.0 340%

SABMiller 3.4 14.7 332%

Heineken 7.0 13.6 95%

Carlsberg 4.8 8.0 67%

Turnover in Billion Euro

Group• It ‘s Amsterdam Stock Exchange listed

company established in 1873

• Heineken have global presence with operations in 71 countries

• Heineken’s reputed brands are Amstel, Bira Moretti, Primus, Sagres and many more

• Joint Venture brand includes Anchor, Cristal, Kingfisher and Tiger

Asia Pacific Breweries• APB is Singapore Listed Company

have presence in brewery since 1883

• It is a part of Fraser and Neave which is Pan –Asia consumer group

• Top Brands includes Tiger, Baron’s Strong Brew, Bintang Beer etc

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34.00

34.50

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38.50 HeinekenShare Price

Source:-Amsterdam Stock Exchange

In Euro’s

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0.00

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60.00 Asia Pacific BreweriesShare Pric...

Source:-Singapore Stock Exchange

Valuation

Strength

Weakness

Opportunity

Threat

1] Strong Brand Name

2] Expertise in Quality Prod.

3] Strong Distribution Network

1] High Distribution Cost

2] Green Field

1] Focus on Asia Pacific

2]Diversification

3] Beers for Women

1] M & A by the Competitors

Cheers..!!