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New Round Of Alcohol Industry M&As Likely, Say Analysts

A number of industry analysts have suggested that the drinks industry could gearing up for a new wave of mergers and acquisitions, following the news that Dutch drinks giant Heineken rejected a takeover bid from SABMiller at the weekend.

Liam Igoe of Goodbody Stockbrokers said that the SABMiller bid could be "seen as a defensive move" amid rumors that AB InBev could be poised to take it over. "The move by SABMiller may signify a new round of consolidation in an industry that has seen a series of large scale M&A in the past decade, including the formation of AbInbev and SABMiller itself," he said.

In addition, Ian Hunter, research analyst with Investec, said that the move "could stimulate the sector into a new round of consolidation as global brewers look to increase their emerging market exposure as sales in more mature markets stall."

On Sunday, Heineken said that it rejected a takeover approach from SABMiller, calling the proposal "nonactionable." It said that “The Heineken family has informed SABMiller, Heineken and Heineken Holding N.V. of its intention to preserve the heritage and identity of Heineken as an independent company."

© 2014 - Checkout Magazine by Stephen Wynne-Jones

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