Californian love affair
What a week it was, that last week in August. Gossip had it that the leading US wine producers, Beringer and Kendall-Jackson, were in merger talks. But, surprisingly, it was Australia’s Foster’s Brewing Group that announced on 29 August that it had entered into a merger agreement with Beringer, with Foster’s valuing Beringer’s equity at A$2.0 billion. In addition Foster’s would assume net debt of about A$560 million. Foster’s gearing (net debt/equity) is expected to increase from 56% as at 30 June 2000 to approximately 99% this financial year.
On the same day, Canada’s Vincor International bought R.H. Philips for US$92 million. And only 48 hours later, The Wine Group took home half a dozen of Sebastiani’s high volume brands in a deal worth an estimated US$300 million........
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