Scottish & Newcastle acquires the Foster’s brand in Europe

Scottish & Newcastle acquires the Foster’s brand in Europe

Scottish & Newcastle Plc is the Britain’s largest brewer and they have said that they are acquiring the Foster’s brand in Europe. This deal also includes rights for other countries including Russia and other countries in the Commonwealth of Independent States.

They have purchased these rights from Foster’s Group Ltd. for about 309 million pounds. The deal was conducted in a cash only transaction.

However, this transaction would require approval from the regulatory authorities. Scottish & Newcastle believes that this transaction would be complete by sometime next month.

The company would be financing this purchase from additional borrowing and the proceeds of an equity placing which will be announced today. Scottish & Newcastle further said that this deal would have a neutral effect on earnings per share in its current financial year.