M&A-Henieken and APB

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M&A-Henieken and APB

  1. 1. Heineken Acquired Fraser and Neave’s Stake in Asia Pacific Breweries Source:-Reuters Date:-3-8-2012
  2. 2. 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
  3. 3. 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
  4. 4. Market Share of big 4breweriesCompany Market Share(%)(2010)Anheuser Busch 23.5InBevSABMiller 12.5Heineken 7.5%Carlsberg 6.7% M&A as a Driver of Global Competition in the Brewing IndustryAcquiring Target CombinedCompany CompanyINBev Anheuser Anheuser Busch Busch InBevMiller South Africa SABMiller Breweries
  5. 5. Year AB InBev SABMiller Heineken Carlsberg Total1997 M&A in Beer Industry 152 1521998 119 1191999 877 8772000 2915 563 34792001 3810 169 39792002 491 223 1164 18782003 1210 350 1541 31012004 4301 814 510 56242005 1827 6262 567 86562006 575 262 8372007 529 5292008 41173 816 182 5466 476382009 837 8372010 4434 292 4726 Note:-Deals Value are in Mln Euro’s
  6. 6. M&A impact ongrowth of big 4 Breweries Turnover in Billion EuroCompany 2000 2010 GrowthA-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%
  7. 7. 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
  8. 8. Asia Pacific Breweries have• APB is Singapore Listed Company 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
  9. 9. 38.50 38.00 37.50 37.00 36.50 36.00 35.50 35.00 34.50 34.00 08/03/2012 08/02/2012 08/01/2012 07/31/2012 07/30/2012 07/27/2012 07/26/2012 07/25/2012 07/24/2012 07/23/2012 07/20/2012 07/19/2012 07/18/2012 07/17/2012 07/16/2012 07/13/2012 07/12/2012 07/11/2012 07/10/2012 Heineken 07/09/2012 07/06/2012 07/05/2012 07/04/2012 07/03/2012 07/02/2012 Share Price In Euro’sSource:-Amsterdam Stock Exchange
  10. 10. Asia Pacific Breweries60.00 Share…50.0040.0030.0020.00 10.00 0.00 Share… Source:-Singapore Stock Exchange
  11. 11. Valuation
  12. 12. Threat Opportunit Weakne Streng y ss th 1] High 1] Focus on 1] M & A by1] Strong Distribution Asia Pacific theBrand Name Cost Competitors 2]Diversificati2] Expertise 2] Green Field onin QualityProd. 3] Beers for Women3] StrongDistributionNetwork
  13. 13. Cheers..!!

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