SABMiller gets Australian Federal Treasurer's nod to buy Foster's

British brewing giant SABMiller said the Australian Federal Treasurer, Wayne Swan, on recommendation from the Foreign Investment Review Board (FIRB), has approved its A$9.9bn ($9.6bn) takeover of Foster's and the remaining 50% of Pacific Beverages.

As part of the FIRB process, SABMiller had to agree to some conditions, such as continuing the management of Foster's operations in Australia and not relocating any of Foster's existing Australian breweries offshore.

SABMiller said given the local nature of Foster's brewing business and its focus on Australian customers, these undertakings are consistent with its current intentions for the business, and will not affect its ability to integrate Foster's and Pacific Beverages or to compete effectively in Australia.

Swan's approval of the transaction is the final regulatory hurdle to be satisfied before the shareholder vote at the scheme meeting to be held on 1 December, the company said.

Once it receives the approval from shareholders, SABMiller expects the acquisition to be completed by the end of this year.

SABMiller operates in Australia through Pacific Beverages, its joint venture with Coca-Cola Amatil, an Australian bottler and distributor of Coca-Cola drinks.

After Foster's acquisition, SABMiller and Coca-Cola Amatil plan to terminate the joint venture so that SABMiller will wholly own both Foster's and Pacific Beverages.

Foster's will join the British brewing giant SABMiller's portfolio that includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie.