Hostilities do not cease between the large beer multinationals. After the troubled courtship between SabMiller and Foster, the game, with different protagonists, moves to the expanding market of South East Asia. The object of the dispute is Asia Pacific Breweries, a Singapore-based company that owns the brand, among many others, of Tiger Beer, pale lager very popular in Indonesia and Singapore, as well as the license to produce Heineken in many Asian countries.
The Dutch multinational owns a total of over 45% of the shares of the Asian brewery, partly with treasury shares and partly through a joint venture with Frasr & Neave, a Singaporean conglomerate which holds control of numerous companies in the food and beverage sector. Heineken presented a 4,5 billion offer last month to acquire the partner's entire stake and gain control of 90% of Asia Pacific Breweries.
The Fraser&Neave shareholders' meeting called to discuss the Dutch offer will be held on September 28, but the operation, which seemed destined to go through, was complicated by the intervention of the Thai multi-billionaire Charoen Sirivadhanabhakdi. The tycoon, with assets estimated by Frobes at 6,2 billion dollars, present in the alcoholic beverages and spirits market with his Thaibev, presented, through the latter company and another company controlled by him, an offer from 7 billioni of dollars to control 100% of Fraser & Neave.
Sirivadhanabhakdi's interest in Asia Pacific Breweries is nothing new. Thaibev came to control 26% of F&N in the summer, while Charoen's son-in-law took over about 9% of the conglomerate's shares and announced that he was ready "to outbid Heineken". Thaibev, waiting to control 100% of F&N, has thus become the majority shareholder of the same company that it will find itself evaluating the Dutch offer.
With the latest move by the Thais, the challenge to conquer a dominant position in a growing market becomes open. Heineken, which needs to diversify its business towards new frontiers in order to cope with the less than exciting results on the European market, announced that it will "carefully evaluate the offer" reserving the right to make new announcements "if and when it is appropriate. The malt war is only just beginning, and it is not yet certain who will be able to toast to victory.
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