BANGALORE: SABMiller plc, one of the world's leading brewers, will acquire the Indian assets of Foster's, the flagship beer brand of the Australian beverage company, Foster's Group Ltd., in an all-cash deal worth about Rs. 540 crore ($120 million).

London-based SABMiller said in a statement that it has entered into an agreement with the Foster's group to acquire its India operations subject to regulatory and other necessary approvals.

As per the agreement, SABMiller will assume ownership of all Foster's assets in India, including the Foster's brand in the territory. Foster's India at present operates a brewery in Aurangabad, Maharashtra, with an annual capacity of 3.50 lakh hectolitres.

"This transaction enhances our existing portfolio in India and provides us with an opportunity to further increase our premium brand offering. With SABMiller's extensive footprint throughout the subcontinent, complemented by Foster's share of Maharashtra and the Mumbai market, India remains a principal growth market for SABMiller,'' SABMiller Africa and Asia Managing Director Andre Parker said.

India is the third largest market for the Foster's brand globally and the company has achieved a compounded annual growth rate (CAGR) of 13 per cent since it commenced operations.

SABMiller was formed in 2002 through the merger of South African Breweries and Miller Brewing and its Indian unit makes Royal Challenge, Haywards 5000, Castle and stout beer Haywards Black.

"This is an outstanding deal for the Foster's group, struck with one of our most important long-term partners. While the Foster's brand has enjoyed great success in India, the opportunity for us to continue to grow the brand profitably from a small production and distribution base in a challenging market structure was limited,'' Foster's Group President and Chief Executive Officer Trevor O'Hoy said.

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