According
to Bloomberg, the world’s largest maker of soft drinks, The Coca-Cola Company(NYSE:KO)
is planning on bidding for Singapore’s Fraser and Neave Ltd. the F & N
business may ditch Coca Cola for Japan-based Kirin Holdings Co., a company that
is also exploring to bid.
As
per Euromonitor International Data, The Fraser and Neave operations would
impart Coca Cola CEO, Muhtar Kent a massive share of the soft-drinks sales in
Singapore and Malaysia. The whole unit that includes Fraser & Neave’s soft drinks
and dairy products may account to as much as $3 billion, according to secret
sources.
Get Daily Instant
News on KO
As
per Lim Jit Soon, an analyst based in Singapore, Nomura Holdings Inc., F &
N has a monopoly in Malaysian market. They have a strong brand name in 100Plus
that has recognition in the overall region.
Fraser
& Neave also owns a real estate business with services apartments,
industrial property and shopping centers. As per the data compiled by
Bloomberg, real estate accounts for S$2.1 billion last year, which is 34% of
the total. The data show had also mentioned that the soft drinks unit had
revenue of S$759 while the dairy business sales accounted for S$1.1 billion in
the year 2011.
Coca
Cola seemingly has not made any decision yet. It is waiting to see what other
suitors have to do.
Fraser
& Neave have requested for a halt in trading of its stakes sa per the
announcement made by Jennifer Yu, spokeswoman for F & N. she refused to
comment on Coca Cola’s interest or reasons for the trading halt. A spokesman
for Coca Cola, Kent Landers said that he can’t comment on market conjecture.
Get Your Free Trend Analysis
Coca
Cola and Kirin are not the only chains that are considering the option of
bidding for F & N’s foods and drinks. Heineken, the world’s third largest
brewer has offered S$7.5 billion to gain control over a brewer wing that it
runs along with F & N. Fraser and Neave owns 40% of Asia Pacific Breweries
Ltd. whereas Heineken owns 42%.
Shares
of KO are down 1.62% to $79.70.
No comments:
Post a Comment