Anheuser Weighs Bid For StarBev

(Wall Street Journal) - Beer heavyweights including Anheuser-Busch InBev NV, on the hunt for a shrinking pool of assets in faster growing markets, are examining a possible purchase of the owner of Czech lager Staropramen in a deal that could be valued at as much as $3 billion, according to people familiar with the matter.

CVC Capital Partners -- which has owned the brewer, called StarBev, since it bought it from Anheuser in December 2009 -- has received a number of takeover approaches for the business since late last year, the people said. The process is in early stages and might not lead to an imminent sale.

Besides Anheuser, according to the people, global brewers expected to at least take a look at the business include Europe's SABMiller, Carlsberg and Heineken, as well as Molson Coors Brewing, Asahi of Japan and possibly other private equity firms.

Anheuser has a "right of first offer" on the business, but it isn't clear how much of an advantage that gives it, should it decide to ultimately mount an offer for StarBev.

StarBev, as it was renamed by CVC, is the former Central and Eastern European operations of Anheuser. It has operations in nine countries including Bosnia, Bulgaria, Croatia and the Czech Republic, where the business is based.

It sells a number of labels that are little known in the West, such as Bergenbier and Borsodi, as well as Staropramen, a global brand available in more than 30 countries. StarBev also has the right to brew or distribute Anheuser brands including Beck's, Hoegaarden, Lowenbrau and Stella Artois.

In a similar deal unfolding across the globe, Anheuser and Tsingtao Brewery are among several companies considering bids for the brewery operations of Kingway Brewery Holdings Ltd. of China, people familiar with the matter recently said.

Private equity firms tend to hold on to companies they buy for three to five years, so a sale at this time of StarBev would represent a fairly quick turnaround and underscore the level of strategic interest in the brewer.

Read more: Wall Street Journal