27 Nov 2011

Foster's takeover approved by Australian govt

5:14 am on 27 November 2011

The federal government in Australia has approved a $A12.3 billion takeover of Foster's by SABMiller.

The deal also includes the purchase of the remaining 50% of Pacific Beverages currently owned by Coca-Cola.

Conditions set by Treasurer Wayne Swan include that management of the brewer will stay in Australia and that SABMiller will not move any existing facilities offshore to produce beer for the Australian market.

The ABC reports the deal still has to be approved by SABMiller shareholders at a meeting on 1 December.

If approved, the company expects the purchase to be completed by the end of the year.

SABMiller is one of the world's largest brewing companies. Its brands includee Peroni Nastro Azzurro, Pilsnur Urquell and Miller Genuine Draft.