Foster's sale clears Australian hurdle

Anglo-South African brewer SABMiller's multi-billion dollar takeover of Foster's cleared a major hurdle Wednesday when Australia's competition watchdog said it would not oppose it. The Foster's board last week agreed to an improved offer worth Aus$9.9 billion (US$10.16 billion), or Aus$5.10 per share, for the company. "The ACCC has formed the view that the proposed acquisition is not likely to result in a substantial lessening of competition for the supply of beer," Australian Competition and Consumer Commission chairman Rod Sims said. The ACCC added that it had carried out a comprehensive review and sought comment from competing breweries, supermarket retailers, distributors, licensed venues and bottle shops, or off-licences. SABMiller expects the takeover to be completed before the end of the year, although the deal still requires the approval of the Foreign Investment Review Board and Foster's shareholders. A takeover of Foster's had been expected since the group's recent demerger of its wine and beer operations and amid consolidation within the Australian beverage industry.