Modelo And Molson Coors Bid For Foster’s Looks Unlikely After Modelo Board DecisionJune 15, 2011
A bid for Foster’s Group by Grupo Modelo and Molson Coors now appears unlikely after Modelo executives declined to put the proposal to a vote at a Monday board meeting, according to various reports. Bloomberg News and The Wall Street Journal quoted unnamed sources as saying the bid for Foster’s was discussed by Modelo’s directors but not brought to a vote Monday. A Grupo Modelo spokesperson said the brewer couldn’t “comment on market rumors or speculation” when contacted today by Shanken News Daily.
A Modelo-Molson Coors bid for Foster’s appeared to face an uphill battle even before the board meeting, because it would require approval from Modelo’s 50%-owner Anheuser-Busch InBev. ABI controls nine of Modelo’s 19 board seats and could mount its own bid for Foster’s if it so chose. Foster’s, which controls a 50% share of the profitable but growth-challenged Australian beer market, is valued at around A$9 billion ($9.5b).Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.