SYDNEY (Reuters) - Australia’s Coca-Cola Amatil (CCL.AX) said it had decided not to buy Fosters’ spirit and spirit ready-to-drink (RTD) business after inspecting the books, and it expects to spend up to A$70 million ($75.29 million)to buy two other businesses.
The firm added because it was not buying the spirits business it expected SAB Miller SAB.L to pay it A$34 million, which it will use for its own alcohol expansion. SAB Miller bought Fosters for A$11.5 billion last year.
As part of the agreement to sell its interest in Pacific Beverages to SABMiller, Coca-Cola Amatil has the right to acquire each of three Fosters’ businesses — Australian spirit and spirit RTD business, the Australian non-alcoholic beverages business and the Fiji Breweries and distillery in Fiji and Samoa.
At its full year results last month, it had indicated the acquisitions might take up A$200 million. ($1 = 0.9298 Australian dollars)
Reporting by Narayanan Somasundaram; Editing by John Mair