Fosters Beer Group Bids for Wine

In an endeavour to create the world's largest quality wine company, the Australlian Fosters beer group has bid to purchase fellow Australian company Southcorp wines, the producers of well know brands such as Penfolds, Lindemans, Wynns and Rosemount.

At this stage only an initial bid has been made, which Southcorp has described as inadequate and which, by the increase recorded on the same day by Southcorp's shares, stockholders also considered undervalued.

This will evolve into an interesting scenario. The outcome could cement the presence of Australian companies in the beer and wine markets world wide.

At present, Australian wines are some of the leading products in the US, UK and other markets and Fosters has one of the strongest positions in beer.

With the two companies merging, it would take their combined market sharein the US to #1 and the same in the UK.

For further information on the this or any other aspect of accessing the Australian market, please email me.

David
editor@agarcarlyon.com