San Miguel in $300m Deal To Expand in Asia Markets

Manila. San Miguel Brewery said on Friday that it would pay $300 million for the international beer business of its parent, Philippine food-to-power conglomerate San Miguel Corp., as it looks to grow its profile across Southeast Asia and into emerging markets like China.

The flagship of the San Miguel group, partly owned by Japan’s Kirin Holdings, will acquire 100 percent of San Miguel Brewing International, with the deal expected to be funded by external debt and completed next month, the company said.

San Miguel Corp. is consolidating its brewery operations in its flagship unit so it can focus on new investments in infrastructure and power sectors to drive future growth.

“With this acquisition, San Miguel Brewery is expanding its footprint to a bigger and broader platform in Southeast Asia and China and potential access to Kirin’s platform in other developed and emerging markets in Asia,” said Roberto Huang, San Miguel Brewery president.

Royal Bank of Scotland was San Miguel Corp.’s sole financial adviser for the transaction, while ING advised SMB.

“The sale of San Miguel’s international beer operations” will allow “SMC to further unlock value in its asset portfolio,” said Vijay Karwal, managing director and head of RBS’ consumer industries team in Asia, noting this was the seventh M&A deal on which it had advised San Miguel in the past decade.



Reuters

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