Sandy

1. Heineken Acquired Fraser and Neave’s
Stake in Asia Pacific Breweries Source:-Reuters
Date:-3-8-2012

2. Deal Overview
• Dutch Company acquired F&N Stakes in APB for
4.1 billion US dollars
• Deal is strategically important for Heineken for
its Pan-Asia footprints
• Heineken own 9.5% stake directly in APB and
65% jointly with F&N ,effective share is 42%
• Type :-Horizontal
• Heineken offered S$50 per share
• Goldman Sachs is advising F&N while Credit
Suisse is advising F&N

3. World Beer
Market
• Global Beer consumption was 210 bn liters in 2011
• Top four are Anheuser Busch InBev, SABMiller,
Heineken, Carlsberg
• Top four brewery accounts for more than 50% of
production
• This is due to M&A rather than organic growth
• Since 1997 the four companies have made a total of
57 acquisitions amounting to 82 billion EURO

4. Market Share of big 4
breweries
Company Market
Share(%)(2010)
Anheuser Busch 23.5
InBev
SABMiller 12.5
Heineken 7.5%
Carlsberg 6.7%
M&A as a Driver of Global
Competition in the Brewing
Industry
Acquiring Target Combined
Company Company
INBev Anheuser Anheuser
Busch Busch InBev
Miller South Africa SABMiller
Breweries

5. Year AB InBev SABMiller Heineken Carlsberg Total
1997 M&A in Beer Industry 152 152
1998 119 119
1999 877 877
2000 2915 563 3479
2001 3810 169 3979
2002 491 223 1164 1878
2003 1210 350 1541 3101
2004 4301 814 510 5624
2005 1827 6262 567 8656
2006 575 262 837
2007 529 529
2008 41173 816 182 5466 47638
2009 837 837
2010 4434 292 4726
Note:-Deals Value are in Mln Euro’s

6. M&A impact on
growth of big 4
Breweries
Turnover in Billion Euro
Company 2000 2010 Growth
A-B InBev 5.9 26.0 340%
SABMiller 3.4 14.7 332%
Heineken 7.0 13.6 95%
Carlsberg 4.8 8.0 67%

7. Group
• It ‘s Amsterdam Stock Exchange listed
company established in 1873
• Heineken have global presence with
operations in 71 countries
• Heineken’s reputed brands are Amstel, Bira
Moretti, Primus, Sagres and many more
• Joint Venture brand includes Anchor, Cristal,
Kingfisher and Tiger

8. Asia Pacific
Breweries have
• APB is Singapore Listed Company
presence in brewery since 1883
• It is a part of Fraser and Neave which is
Pan –Asia consumer group
• Top Brands includes Tiger, Baron’s Strong
Brew, Bintang Beer etc

9. 38.50
38.00
37.50
37.00
36.50
36.00
35.50
35.00
34.50
34.00
08/03/2012
08/02/2012
08/01/2012
07/31/2012
07/30/2012
07/27/2012
07/26/2012
07/25/2012
07/24/2012
07/23/2012
07/20/2012
07/19/2012
07/18/2012
07/17/2012
07/16/2012
07/13/2012
07/12/2012
07/11/2012
07/10/2012
Heineken
07/09/2012
07/06/2012
07/05/2012
07/04/2012
07/03/2012
07/02/2012
Share Price
In Euro’s
Source:-Amsterdam Stock Exchange

10. Asia Pacific Breweries
60.00
Share…
50.00
40.00
30.00
20.00
10.00
0.00
Share…
Source:-Singapore Stock Exchange

11. Valuation

12. Threat
Opportunit
Weakne
Streng y
ss
th 1] High 1] Focus on 1] M & A by
1] Strong
Distribution Asia Pacific the
Brand Name
Cost Competitors
2]Diversificati
2] Expertise
2] Green Field on
in Quality
Prod.
3] Beers for
Women
3] Strong
Distribution
Network

13. Cheer
s..!!