Heineken – Chang, the battle is over
The takeover battle between Heineken and Thaibev (Chang), which seemed to be reaching a climax, has petered out.
To refresh your memory, the players: APB, the brewer of Tiger beer and dominant in the Asian market, Heineken as major shareholder in APB and owner of the Tiger beer brand, Fraser & Neave (F&N) also major shareholder in APB and active in the food and beverage sector.
Charoen, the Thai owner of Thaibev, known for, among other things, Chang beer and many whiskey brands, very recently put Heineken on the block by acquiring an interest in APB and also acquiring a 30 percent interest in F&N, so indirectly also in APB. Declining beer sales in Europe and an 8 percent increase in Asia show how important APB is to Heineken.
Earlier, Heineken and F&N, with whom Heineken has worked for many years, had agreed that Heineken would take over the interest in APB.
However, the smart Charoen threw a spanner in the works and his son-in-law managed to acquire an interest of 8,6% with his investment company The Kindest Place.
Peace is made
The gentlemen sat down at the table with the result that Thaibev will support Heineken's offer for APB shares, owned by F&N, at the extraordinary shareholders' meeting. In return, Heineken will not make a counter-offer for the F&N shares and Thaibev will have the opportunity to acquire F&N. It could mean important distribution support for its whiskey brands, among others.
Heineken acquires an 86,5% stake
To help the Dutch brewer even further, Charoen's son-in-law is also lending a helping hand and will sell the 8,6% interest to Heineken. This gives Heineken absolute control over APB with 95,1 percent and allows APB shares to be delisted and integrated within Heineken.
I already wrote it in an earlier story; however it turns out, the winner is still mister Charoen. The third richest man in Thailand may be able to move up another step in the ranking of the very richest in the world. His son-in-law also certainly saved a few nice bucks from the transaction. In this case, the Dutch merchant spirit was trumped by a very smart and handy Thai merchant.
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Fortunately, then the chance that the beer price in Thailand will also remain at the Thai level is perhaps a bit higher …
The Dutch merchant spirit has lost it against Mr Charoen?
Really?
Mr Charoen has become a bit richer again.
But I think in that wealth class more money is not really important.
Power does.
And does Dehr Charoen have more power now?
Heineken wanted to secure itself in Asia by means of a majority interest in APB.
And now they have.
What is the real state of ownership of shares in F&N and Thaibev?
Even the major shareholders don't know, I think.
But there are also unpacked surprises there, after all, Heineken has promised not to make a counteroffer on F&N, but I certainly do not exclude that something will happen in the not too distant future.
It seems to me all resemble the hassle with TMB and ING years ago.
The purchase price of a bottle of Heineken beer in Thailand is higher than in the Netherlands. A box of Heineken costs 900-1000 baht in Thailand. Compared to a crate in the Netherlands, it is therefore much too expensive.
When it comes to the price in the bar, completely different things play a role, such as establishment costs and personnel costs. Heineken has no influence on that at all.
So I don't quite understand your response.
Heineken has been dozing off for years. They have had an interest in F&N for over twenty years.
The European beer market has been a saturated market for years and Asia a growth market. They should have done this ten years ago. So they now pay way too much and are also being taught a lesson by a Thai, who very cleverly turns them off for a while. Heineken top management, you should be ashamed