Asia Pacific Breweries surges on Heineken bid

Asia Pacific Breweries Ltd. surged to a record in Singapore trading after Heineken NV, the world’s third-biggest brewer, offered as much as $6 billion for full control of the maker of Tiger beer.

Asia Pacific Breweries rose as much as 18 percent to S$49.50 before closing up 15 percent at S$48.49. Fraser and Neave Ltd., or F&N, which owns a 40 percent stake in the beer maker, gained 4.2 percent to S$7.92. The stocks were suspended from trade on July 20.

Heineken, with 42 percent of Asia Pacific Breweries, or APB, on Friday said it would pay as much as S$7.5 billion ($6 billion) to buy out other investors in the Singapore company at S$50 a share, including the stake held by Fraser and Neave. Heineken made the offer to protect its position after Thai Beverage Pcl, controlled by billionaire Charoen Sirivadhanabhakdi ’s TCC group, offered to buy a 22 percent stake in F&N, with his son-in-law’s company buying a stake in APB.

Fraser & Neave, or F&N, said it’s considering the offer from the Dutch company, though there’s no certainty that an agreement will be reached.

Any deal would be the latest step in the consolidation of the industry as brewers buy each other or seek full control of joint ventures. Anheuser-Busch InBev NV, the world’s biggest brewer with an 18 percent share of the market, bid $20.1 billion for the remaining 50 percent of Grupo Modelo SAB last month, tightening its hold on the Mexican market.

--With assistance from Sharon Chen, Joyce Koh and Netty Ismail in Singapore, Yuki Yamaguchi in Tokyo, Anuchit Nguyen in Bangkok and Clementine Fletcher in London. Editors: Anjali Cordeiro, Robert Fenner

To contact the reporter on this story: Anjali Cordeiro in Hong Kong at acordeiro2bloomberg.net

To contact the editor responsible for this story: Stephanie Wong at swong139bloomberg.net