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SABMiller PLC - Acquisition

RNS Number:2420H
SABMiller PLC
04 August 2006


                       SABMILLER ACQUIRES FOSTER'S INDIA


London and Johannesburg, 4 August 2006.  SABMiller plc, one of the world's
leading brewers, today announces it has entered into an agreement to acquire a
100% interest in Foster's India for a consideration of US$120 million on a
cash-free debt-free basis, subject to certain conditions being fulfilled. Under
the terms of the agreement, SABMiller will assume ownership of all Foster's
assets in India including the Foster's brand in the territory.

Foster's India currently operates one brewery based in Aurangabad in the state
of Maharashtra with a licenced annual capacity of 350,000 hectolitres. The
company produces, distributes and supports Foster's Lager, Amberro Mild and
Amberro Strong beer brands in the Indian market. In the year ended 30 June 2006,
total beer sales were 236,000 hectolitres (2005: 209,000 hl) with Foster's Lager
representing 88% of total production and sales (2005: 85%).

India is the third largest market for the Foster's brand globally and it has
achieved a CAGR of 13% since operations commenced in 1998. It has a presence in
19 Indian states and has a substantial share of the mild beer segment in the
strategic state of Maharashtra.

SABMiller India will look to extend Foster's Lager nationally through its
network of ten breweries and seek significant cost benefits from brewing and
distributing the brand locally. The Aurangabad brewery will also provide
additional capacity for SABMiller's presence in Maharashtra as well as a
platform for access to the Mumbai market.

SABMiller India is the subcontinent's second largest brewer. Its brand portfolio
includes Royal Challenge, Haywards 5000, Castle and the recently launched
Haywards Black, India's first stout beer.

Commenting on the acquisition, Andre Parker, Managing Director of SABMiller
Africa and Asia, said:

'This transaction enhances our existing portfolio in India and provides us with
an exciting opportunity to further increase our premium brand offering. The
acquisition also supplies much needed capacity to fuel the strong growth we have
experienced so far this year.

'With SABMiller's extensive footprint throughout the subcontinent, complemented
by Foster's share of Maharashtra and the important Mumbai market, India remains
a principal growth market for SABMiller.'

Trevor O'Hoy, President and Chief Executive Officer of Foster's Group, said:

'This is an outstanding deal for Foster's Group, struck with one of our most
important long-term partners. While the Foster's brand has enjoyed great success
in India, the opportunity for us to continue to grow the brand profitably from a
small production and distribution base, in a challenging market structure, was
limited.

'The value we have achieved through the outright sale of the Foster's brand,
together with the brewery and local brands, far outweighs the potential future
value of retaining Foster's and continuing to own and operate the business, or
pursuing a licence agreement.'


Ends


Notes to editors:

SABMiller

SABMiller plc is one of the world's largest brewers with brewing interests or
distribution agreements in over 60 countries across five continents. The group's
brands include premium international beers such as Miller Genuine Draft, Peroni
Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market
leading local brands.  Outside the USA, SABMiller plc is also one of the largest
bottlers of Coca-Cola products in the world.

In the year ended 31 March 2006, the group reported US$2,626 million adjusted
pre-tax profit and a turnover of US$15,307 million.  SABMiller plc is listed on
the London and Johannesburg stock exchanges.

Foster's Group Limited

Foster's Group is a leading global drinks company, with a portfolio of wine,
beer, spirits, ready-to-drinks, ciders, and non-alcohol brands. Based in
Melbourne, Australia and listed on the Australian Stock Exchange, Foster's Group
is the global leader in premium wine, and has Australia's leading portfolio of
alcohol brands.

With an approximate market capitalisation of US$8 billion and annual revenues of
US$4 billion annually, Foster's Group employs over 10,000 people in production,
sales and marketing offices in Australia, North America, Europe, and Asia.

This announcement is available on the company website: www.sabmiller.com

High resolution images are available for the media to view and download free of
charge from: www.vismedia.co.uk

Enquiries:

                                SABMiller plc                            Tel: +44 20 7659 0100

Sue Clark                       Director of Corporate Affairs            Tel: +44 20 7659 0184

Gary Leibowitz                  Senior Vice President, Investor          Tel: +44 20 7659 0174
                                Relations

James Crampton                  Media Relations Manager                  Tel: +44 20 7659 0172


This announcement does not constitute an offer to sell or issue or the
solicitation of an offer to buy or acquire securities of SABMiller plc (the
'Company') or any of its affiliates in any jurisdiction or an inducement to
enter into investment activity.

This document includes 'forward-looking statements'.  These statements may
contain the words 'anticipate', 'believe', 'intend', 'estimate', 'expect' and
words of similar meaning.  All statements other than statements of historical
facts included in this announcement, including, without limitation, those
regarding the Company's financial position, business strategy, plans and
objectives of management for future operations (including development plans and
objectives relating to the Company's products and services) are forward-looking
statements.  These forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the actual results,
performance or achievements of the Company to be materially different from
future results, performance or achievements expressed or implied by such
forward-looking statements.  These forward-looking statements are based on
numerous assumptions regarding the Company's present and future business
strategies and the environment in which the Company will operate in the future.
These forward-looking statements speak only as at the date of this announcement.
The Company expressly disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward-looking statements contained in this
announcement to reflect any change in the Company's expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based.

Any information contained in this announcement on the price at which the
Company's securities have been bought or sold in the past, or on the yield on
such securities, should not be relied upon as a guide to future performance.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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