Japan’s Kirin Brewery Company has joined Dutch beer giant Heineken NV to defend ground into what is shaping up to be a “beer war” after Thailand Beverage Pcl. bought a US3 billion-dollar stake in Singapore-based Fraser & Neave Ltd. (F&N) and Asia Pacific Brewing (APB), makers of Tiger beer.
Heineken, which has a partnership with APB, has vowed to stand its own ground to protect its turf in the lucrative Southeast Asian beer market by making a US4.1 billion-dollar counter offer for F&N’s shares in APB.
Heineken’s offer, which was set to expire today, has been extended for a week with rumors of a takeover battle for F&N’s assets involving Charoen Srivadhanabhakdi’s ThaiBev – makers of Chang beer – and Kirin, Asiaone reported.
Mr. Charoen’ successful buy-in last Wednesday made him the largest stakeholder in the beverage company, riling Heineken while Kirin, which has a 15 percent stake in Fraser & Neave, initially stood by.
However, Kirin and Fraser & Neave this week sought the assistance of investment banks to advise them through the takeover battle, the Malaysia Star reported.
Kirin’s stake in F&N would put them in the position to potentially block a buyout resulting in a separation of the firm.
Kirin is now said to be considering a bid for F&N’s soft drink and dairy assets, MarketWatch reported.
This isn’t the first time that ThaiBev has managed to ruffle a European brewer’s feathers. In 2005, Carlsberg ended its joint venture with Chang brewing, claiming that Chang did not fulfill contractual obligations.
