:. Food Industry News

Categories: Mergers and Acquisitions

Lion Nathan Seeks OK to Buy New Zealand Independent Liquor

Source: Reuters
03/07/2006

Wellington, July 3 - Australasian brewer Lion Nathan Ltd. said it had applied for regulatory clearance to buy unlisted New Zealand alcoholic drinks company Independent Liquor Ltd., but had not yet decided whether it would make an offer.

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A price tag of up to A$1.1 billion ($814 million) has been put on Independent Liquor by some analysts, with Lion Nathan seen as a leading contender.

"The application has been made to allow the company to keep open all options in the event that the Independent business is offered for sale in the coming months," Lion Nathan said in a statement.

"Lion Nathan does not yet have sufficient information to enable it to make a fully informed decision as to whether it would make an offer for Independent."

Lion Nathan had previously said it was looking to expand this year into the dark spirits market, where bourbon, rum and whisky-based drinks are among the fastest growing retail liquor types.

That expansion could be through development of its own brands or through acquisition.

A sale of the privately-owned Independent Liquor has been speculated since the death of its founder, Michael Erceg, in a helicopter crash last November.

Independent's products include ready-to-drink Woodstock Bourbon & Cola and Kristov Vodka Cruisers. It makes Haagen beer, and imports beers including Carlsberg, Tuborg and Grolsch.

It has plants in New Zealand, Australia and Britain, and exports into Asia and North America.

Lion Nathan, originally a New Zealand-based company but now 46 percent owned by Japan's Kirin Brewery Co., is the dominant liquor group in New Zealand, with beer brands such as Lion Red, Steinlager and Stella Artois.

It also distributes leading wine and spirits brands, and has the Liquor King retail chain.

New Zealand's Commerce Commission said it would consider whether the acquisition would substantially lessen competition in the market.

Other potential bidders for Independent Liquor include New Zealand's number two brewing group DB Breweries Ltd, a unit of Singapore's Asia Pacific Breweries Ltd., Australia's Foster's Group Ltd., as well as global spirits groups and private equity firms.

Independent said in May that it had appointed UBS as advisers.

Shares in Lion Nathan closed in New Zealand up three cents at NZ$9.43, and closed in Australia down 0.6 percent at A$7.75.



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