Colombia & UK: SABMiller protects beer monopoly with juice sale
SABMiller plc (“SABMiller”) announced June 29 that its Colombian subsidiary Bavaria S.A. (“Bavaria”) has entered into an agreement to sell its fruit juice business through a sale of 100% of the equity interest in Productora de Jugos (a fruit pulp business located in Tuluá), the Tutti Frutti and Orense trademarks and certain assets associated with juice production, to the Colombian beverage company Postobón S.A. (“Postobón”), for a cash consideration of US$55.3 million. In the year to December 2005, Bavaria sold approximately 700 thousand hectolitres of juices. This transaction is subject to the review and approval of the Colombian competition authorities.
Postobón, which is part of the Organización Ardila Lülle, is a producer of soft drinks, water and fruit juices and is seeking to develop its fruit and juice exports to international markets following the ratification of the Free Trade Agreement with the United States.
In addition, SABMiller has signed a co-operation agreement with Carbe, the majority shareholder of Postobón, which includes an intention to assist Postobón in the development of its international markets. The agreement includes, inter alia, a right of first refusal in favour of SABMiller, in the event of a sale of the Postobón beverage business.
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