SABMiller Shows Interest in Foster’s Wine Business

SABMiller is working with JPMorgan Chase to study the beer business of Foster’s, according to Bloomberg.

Foster’s said its wine and beer units can be valued more “appropriately” when separated.

The Australian brewery recently rejected a bid worth A$2.7bn (US$2.5bn) for its Treasury Wine Estates wine business because it “significantly undervalued” the unit.

Foster’s CEO Ian Johnston said he planned to spin off of Treasury Wine Estates, which has lost almost half its book value as grape gluts and an appreciating Australian currency slashed earnings.

Analysts estimate the division is worth A$3bn (US$2.7bn).