Grupo Modelo SAB de CV, the Mexican brewer of Corona beer, will seek board support for a possible joint bid with Molson Coors Brewing Co. for Foster’s Group Ltd. of Australia at a June 13 meeting in Mexico City.
Such a proposal would need the backing of Anheuser-Busch InBev NV, which has nine seats on Modelo’s 19-person board and holds a 50 percent non-controlling stake. An offer would have to be at least $9 billion, or more than Foster’s current market value, said the people, who declined to be identified because the talks are private.
AB InBev is likely to tell Modelo at the meeting whether it will officially support or oppose a bid, said the people. The companies have discussed the idea, and AB InBev has raised concerns, including how the two companies would work together to manage a business based in Australia, one of the people said.
Jennifer Shelley, a spokeswoman for Modelo, declined to comment. Colin Wheeler, a spokesman for Denver-based Molson Coors, and Marianne Amssoms, a spokeswoman for Anheuser-Busch InBev, also declined to comment.
Molson Coors remains interested in pursuing a joint bid for Foster’s and if a joint Modelo-Molson Coors bid falls apart or is thwarted by AB InBev, then Modelo and Molson Coors could also pursue a bid on their own or with other partners, people said this month.
The brewers are working with banks including Bank of America Corp. and Deutsche Bank AG on lining up financing for a potential purchase, said the people, who declined to be identified because the matter is private. Melbourne-based Foster’s has a market value of about $9.3 billion.
