Beer fight: Chang vs. Heineken
It is war between the rivals Chang and Heineken.
The facts at a glance: the beer brand Tiger, which belongs to the Heineken stable and is popular in Asia, has been brewed for many years by the Singapore-based brewery of Asia Pacific Breweries, in which Heineken has a 42 percent interest. The other major shareholder is Fraser & Neave, also based in Singapore, with a 40 percent interest.
Asia Pacific Breweries (APB)
APB is not a small brewery and has representations in no fewer than sixty countries and owns 30 breweries in fourteen different countries, including, in addition to Singapore, China, Cambodia, Laos, Sri Lanka, Indonesia, Vietnam and Thailand. They carry about forty different beer brands, including, in addition to the main Tiger brand, Foster's, the Indonesian Bintam and the well-known Anchor in Vietnam. In short, the brewery is one of the most important players in the Asian beer market.
Fraser & Neave (F&N)
Heineken has had a good partnership with the Food and Beverage company F & N, the other major shareholder in APB, for many years.
Meanwhile, Heineken has more or less been put in front of the block by Thai Bev, the brewer of Chang, and has made an offer of 53 Singapore dollars per share for the F & N interest in APB. F & N has advised its shareholders to accept this offer in the interests of continuity.
Thai Bev
The Thai Bev beverage empire of Charoen Sirivadhanabhakdi, the third richest man in Thailand, which includes Chang beer in addition to a number of whiskey brands, has in turn taken a 29 percent stake in F & N. As a bolt from the blue, Charoen's son-in-law has with its Kindest Place Group has now made an offer for APB shares of 56 Singapore dollars, so 3 dollars above the Heineken offer. Earlier, the Dutch brewer indicated that its offer was a final offer involving an amount of 3.6 billion euros. Whether shareholders follow F&N's advice or whether they opt for the money remains to be seen.
The winner has been announced
However the affair will turn out, Thai Bev is the winner in any case. If Heineken succeeds in acquiring the F & N share, then according to the laws in force in Singapore it will have to take over the shares in APB held by Thai Bev, which will provide Mr. Charoen with a nice profit. Heineken will have to, because the European beer market is shrinking and the Asian market has increased by eight percent. It's going to be tight, count on that.
Anchor comes from Cambodia and is therefore very popular there (and not in Vietnam).
Chang and Heineken are not really rivals, Heineken an sich is dozens of times bigger (and is really worldwide) but in this case they both bid for the same.
Another difference is that Chang is many times less tasty than Heineken in my personal preference.
Well, not everyone agrees with that… My circle of friends (in Thailand) prefer to drink Chang than Heineken. It seems as if Heineken tastes blander in Thailand (SE Asia) than in NL. Apart from the crazy price difference.
Frank
Tastes and preferences will always differ and that's how it should be.
Heineken is about three times the size of Thai Bev, so in the end they have the best chances. Although they may have to dig a little deeper into their pockets. Because in fact, that son-in-law is just driving up the value of his father-in-law's shares, at Heinken's expense...
For those who are interested. There is a video about this acquisition on the site of de telegraaf.nl. Heineken would almost have it in. Shares rose 6.35% today.