AB InBev may have route to acquisition of Castel via SABMiller’s right of first refusal
SABMiller [LON:SAB], the UK-based brewer being taken over by Anheuser-Busch InBev [EBR:ABI], has right of first refusal over a potential sale of Castel Group of France, the Irish Examiner reported.
Sources said SAB and family-owned Castel have a cross-shareholding which would offer SAB the right to acquire Castel in the event the French company ever seeks to sell itself outside the Castel family. Pierre Castel, head of the family, is approaching 90 years old, the report noted.
Once Belgium-headquartered AB InBev’s proposed GBP 79bn (USD 94bn) acquisition of SAB has completed, AB InBev will also acquire the potential right to buy out Castel, possibly leading the way to a full takeover, the item reported. Analysts estimate Castel to have a value in excess of USD 30bn, the report said.
Alicia Forry, an analyst with Liberum, predicted AB InBev would be very keen to acquire Castel if it had the opportunity, describing the Africa-focused French drinks group as a jewel.
Carlos Brito,Chief Executive of AB InBev, was asked about Castel by analysts last month and said AB InBev plans to nurture its “very important” links with the French business, the item reported.
The report went on to note banker speculation that AB InBev might attempt to take over Atlanta-based soft drinks giant The Coca-Cola Company [NYSE:KO], possibly with the backing of Coke investor Warren Buffett. Buffett and 3G Capital, a backer of AB InBev, have a growing relationship, the report said. Coca-Cola has a USD 188bn market cap, the item noted.
Irish Examiner