Grupo Modelo and Molson Coors Look to Break Into Booming Australian Beer Market
Grupo Modelo SAB de CV (MXK:GMODELOC), the Mexican brewer of Corona beer, is exploring a possible joint bid with Molson Coors Brewing Co. (NYSE:TAP) for Australian brewer Foster’s Group Ltd. (ASX:FGL). Foster’s has a market value of about A$8.3 billion, or $8.8 billion USD.
Foster’s is one of two brewers controlling a combined 90% of the market in Australia, one of the biggest beer-drinking nations in the world with population growth forecast to outstrip the U.S. and Western Europe. However, a bid looks less likely than it did a few weeks ago when Foster’s first purged themselves of their failing wine assets and began looking for a buyer because there are concerns about the structure of the deal. The deal might also face opposition from Anheuser-Busch InBev NV (NYSE:BUD), which owns 50% of Modelo.
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