Dutch-Thai beer battle erupting

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Charoen Sirivadhanabhakdi, one of Thailand’s richest men and majority owner of Thai Beverage, the country’s largest brewer.

The bidding war between Heineken Group of the Netherlands and Thailand’s largest brewer Thai Beverage for Singapore’s Tiger Beer is getting tougher.

In a surprise move, Thai beverage tycoon Charoen Sirivadhanabhakdi, the major stake holder of Thai Beverage, on August 7 raised his offer for Tiger Beer maker Asia Pacific Breweries, which was already prepared to be acquired by Heineken for 7.7 billion Singapore dollars as its board recommended to accept the Dutch bid.

Inside Investor reported on the acquisition bids on July 18. The Thai offer is now 10 per cent higher than Heineken’s, which, in turn, puts pressure on Heineken to sweeten its own bid. Analysts expect the bidding war to continue.

Thai Beverage is the largest drink maker in Thailand, with key brands such as Chang Beer, Sangsom and Mekhong Whiskey, and is also engaged in the soft drink and convenience food business.

In case the Thai company succeeds in the bidding war, it could add the Tiger brand to its portfolio as well as Anchor Beer and Indonesia’s popular Bintang beer. It would also gain control over 30 breweries in 14 countries: Singapore, Cambodia, China, Indonesia, Laos, Malaysia, Mongolia, New Caledonia, New Zealand, Papua New Guinea, Solomon Islands, Sri Lanka, Thailand and Vietnam.

According to market research company Euromonitor, the Asia-Pacific region is the world’s biggest beer market with 35.3 per cent of the total volume consumed globally last year, up from 34.4 per cent in 2010. Total beer consumption in the region was estimated at 67 billion liters in 2011, set to rise to nearly 85 billion liters by 2016, thanks to the region’s rapidly growing middle classes.

 

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Reading Time: 2 minutes

Charoen Sirivadhanabhakdi, one of Thailand’s richest men and majority owner of Thai Beverage, the country’s largest brewer.

The bidding war between Heineken Group of the Netherlands and Thailand’s largest brewer Thai Beverage for Singapore’s Tiger Beer is getting tougher.

Reading Time: 2 minutes

Charoen Sirivadhanabhakdi, one of Thailand’s richest men and majority owner of Thai Beverage, the country’s largest brewer.

The bidding war between Heineken Group of the Netherlands and Thailand’s largest brewer Thai Beverage for Singapore’s Tiger Beer is getting tougher.

In a surprise move, Thai beverage tycoon Charoen Sirivadhanabhakdi, the major stake holder of Thai Beverage, on August 7 raised his offer for Tiger Beer maker Asia Pacific Breweries, which was already prepared to be acquired by Heineken for 7.7 billion Singapore dollars as its board recommended to accept the Dutch bid.

Inside Investor reported on the acquisition bids on July 18. The Thai offer is now 10 per cent higher than Heineken’s, which, in turn, puts pressure on Heineken to sweeten its own bid. Analysts expect the bidding war to continue.

Thai Beverage is the largest drink maker in Thailand, with key brands such as Chang Beer, Sangsom and Mekhong Whiskey, and is also engaged in the soft drink and convenience food business.

In case the Thai company succeeds in the bidding war, it could add the Tiger brand to its portfolio as well as Anchor Beer and Indonesia’s popular Bintang beer. It would also gain control over 30 breweries in 14 countries: Singapore, Cambodia, China, Indonesia, Laos, Malaysia, Mongolia, New Caledonia, New Zealand, Papua New Guinea, Solomon Islands, Sri Lanka, Thailand and Vietnam.

According to market research company Euromonitor, the Asia-Pacific region is the world’s biggest beer market with 35.3 per cent of the total volume consumed globally last year, up from 34.4 per cent in 2010. Total beer consumption in the region was estimated at 67 billion liters in 2011, set to rise to nearly 85 billion liters by 2016, thanks to the region’s rapidly growing middle classes.

 

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