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Well as I have been saying Schweppes was on the market and being spied from Japan. Got the country right but the company wrong. Drinks giant Asahi Breweries has bought the Schweppes business from Cadbury PLC.

This is subject to The Coca Cola Company not using its last offer rights, which it holds for 90 days.  It would be a hard road for the guys from Atlanta to get the business with the ACCC having a close look at the Schweppes bottling arrangements for the Pepsi brand.

The cash sale price of the business is £550 million ($A1.19 billion), which is sightly more than market expectations.

Asahi Breweries

The Age reported that:

BusinessDay believes that unsuccessful bidders included Suntory, the Australian-based Coca-Cola Amatil (which has Coca-Cola as a 30 per cent shareholder) and P&N Beverages.

So I was close but no cigar.

Tim

Posted under Uncategorized

I have been saying it for a while, and still believe Schweppes will be purchased by Suntory.  Cadbury have confirmed they have put it on the table for sale.

Chief Executive Todd  Stitzer said that after a six-month review, the company had received sufficient interest in its Australian drinks business to be persuaded that a sale makes sense. The Australian drinks business is Cadbury’s last remaining beverage operation after it spun off Dr Pepper Snapple Group Inc. in the U.S. earlier this year.

You heard it here folks.

Tim

Posted under News

Based on the number of hits “Suntory” and “Schweppes” are delivering to this blog,  I believe the deal is over the line and we just await the official announcement.

George Clooney - Suntory Spokesmodel

A number of Schweppes key executive have been offered retention contracts to keep them in the new structure, while the majority will await the fallout from the deal.

Tim

Posted under News

Is it Lion Nathan & Coca Cola or National Foods & Schweppes – common denominator is KIRIN. With the dramatic fall against the Yen by the A$ both options look very possible.

I hear the Scweppes deal is very much over the line but if that is the case then it is probably not National Foods, it is more likely to be P&N Beverages or Suntory. My money is on Suntory at this stage due to the high profile of the Lion Nathan Deal with CCA.

What might be holding up the deal is the renegotiaion of the Pepsi bottling agreement with Cadbury Schweppes.  The new buyer would prefer this agreement in the deal to give access to the volume for distribution savings.

Any News?

Tim

Posted under News