Belgian beer maker Interbrew, owner of Stella Artois brand, is in talks to take over another large international group in the field, South African Breweries (SAB), according to the Financial Times.
The merger will form the world's second-largest beer producer and will also have a strong impact upon the two companies' activity in Romania.
Interbrew holds three beer plants in Romania and boasts 13-14% in market share, while South African Breweries is the second-largest player, after Austrian group Brau Union Romania, which holds 35% market share. SAB owns 14.5% of the market and one of the best-known beer brands in Romania, Ursus.
The international merger of the two companies would create a very powerful player in Romania as well, with a market share exceeding 28% and a financial strength enabling it to go for the first place.
Moreover, the portfolio of the new company would be comprised of brands such as Stella Artois, Ursus, Bergenbier, Efes and Caraiman.
Top officials of the two companies would not comment on the transaction, but sources quoted by the Financial Times say that Interbrew will finalise the bid by December 3, while the deal may be concluded on January 7.
Negotiations were conducted in the utmost secrecy, as the documents designate SAB by the code name of "Zulu" (name of an African tribe), while Interbrew is named "Ice."
SAB is listed on the London Stock Exchange and has a stock capitalisation amounting to 4.9 billion dollars, while analysts expect the price offered by Interbrew for the South-African producer to exceed 5.6 billion dollars.
According to the documents quoted by the Financial Times, which are in fact reports drafted by Interbrew Board, the acquisition of SAB would have a synergy effect (expense cut combined with an increase in revenues exceeding the two turnover levels) worth 1.3 billion dollars.
Interbrew estimates sales worth 100 million euros for Romania this year, almost similar to the level posted last year.
SAB this year authored the most spectacular move on the Romanian beer market, acquiring the largest regional beer plant, Bere Timisoreana, for 10-15 million dollars.
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