Brewery surges after Heineken offer

Asia Pacific Breweries Ltd surged to a record in Singapore trading yesterday after Heineken, the world’s third-biggest brewer, offered as much as $6bn (€4.75bn) for full control of the maker of Tiger beer.

Asia Pacific Breweries rose as much as 18% to S$49.50 before closing up 15% at S$48.49. Fraser and Neave Ltd, or F&N, which owns a 40% stake in the beer maker, gained 4.2% to S$7.92. The stocks were suspended from trade on Jul 20.

Heineken, with 42% of Asia Pacific Breweries, or APB, on Friday said it would pay as much as S$7.5bn to buy out other investors in the Singapore company at S$50 a share, including the stake held by Fraser and Neave. Heineken made the offer to protect its position after Thai Beverage, controlled by billionaire Charoen Sirivadhanabhakdi’s TCC group, offered to buy a 22% stake in F&N, with his son-in-law’s company buying a stake in APB.

Fraser & Neave, or F&N, said it’s considering the offer from the Dutch company, though there’s no certainty that an agreement will be reached.

Any deal would be the latest step in the consolidation of the industry as brewers buy each other or seek full control of joint ventures. Anheuser-Busch InBev NV, the world’s biggest brewer with an 18% share of the market, bid $20.1 billion for the remaining 50% of Grupo Modelo SAB last month, tightening its hold on the Mexican market.