Heineken Rejects Buyout Bid By SABMiller

(RTTNews) - Dutch brewer Heineken N.V. (HKHHF.PK, HINKF.PK) confirmed Sunday that British brewer SABMiller Plc (SAB.L, SBMRY.PK) had approached the company regarding a potential acquisition. However, Heineken added that after consulting its majority shareholder, it has rejected the proposal and intends to remain independent.

In a statement, Heineken said, "The Heineken family has informed SABMiller, Heineken and Heineken Holding N.V. of its intention to preserve the heritage and identity of Heineken as an independent company. The Heineken family and Heineken N.V.'s management are confident that the Company will continue to deliver growth and shareholder value."

Heineken added that it does not plan to make any further public statements in relation the announcement.

According to a report by Bloomberg, SABMiller made the bid for Heineken so that the deal would strengthen SABMiller against a potential bid by its larger rival, Belgian brewer Anheuser-Busch InBev NV ((BUD, AHBIF.PK).

Bloomberg reported that SABMiller made the offer in the last two weeks and the offer would have made the Heineken family one of the combined company's largest shareholders.

Speculation has been rife about Anheuser-Busch InBev, known as AB InBev, trying to acquire SABMiller. An acquisition of SABMiller will enable AB InBev to dominate beer sales across the world.

AB InBev said in April 2014 that it completed the $5.8 billion acquisition of South Korean brewer Oriental Brewery, returning Oriental Brewery to the AB InBev portfolio after the company had sold it in July 2009.

AB InBev said in July that it has bought Pivovar Samson AS, a small Czech brewer based in Ceske Budejovice, the place of origin of the Budweiser lager beer. The company acquired Samson from Cyprus-based Taurus One Ltd. for an undisclosed amount.

Packaging products company Crown Holdings, Inc (CCK) said in early September that it entered into a definitive agreement with Heineken to buy its packaging businesses Empaque in Mexico for $1.225 billion in cash.

HINKF closed Friday's trading at $76.95, down $1.90 or 2.41 percent on a volume of 100 shares.

On the London Stock Exchange,SAB.L closed Friday's trading at 3,405.50 pence, down 14.00 pence or 0.41 percent on a volume of 2.84 million shares.