SABMiller is exploring the possibility of snapping up a stake in Myanmar’s biggest brewer‚ a deal that would make it the partner of a conglomerate with ties to the former ruling military‚ sources familiar with the matter say.
Any such deal involving Myanmar Brewery would probably be seen as a vote of confidence in the country’s nascent consumer sector‚ which is emerging after decades of military dictatorship.
The conglomerate‚ Myanmar Economic Holdings Ltd (MEHL)‚ was cleared to buy the stake‚ thought to be worth about $500-million (R5.9-billion)‚ in October when it won an arbitration case against Singapore’s Fraser and Neave (F&N).
A Singaporean tribunal ruled that MEHL was entitled to buy out F&N’s 55% stake in Myanmar Brewery‚ taking full control of the brewer‚ because F&N had defaulted on a term in their joint venture agreement.
F&N said at the time it was disappointed at the ruling and was reviewing its options.