Reports emerged Sunday that renowned brewer SABMiller Plc is mulling the purchase of Brazilian business Primo Schincariol Industria de Cervejas e Refrigerantes. Primo Schincariol Industria de Cervejas e Refrigerantes is a privately owned firm and the country’s second largest brewer. The firm has been up for sale for around $2 billion, reported RTT News.

The UK based SABMiller is the world's second- largest brewer by volume. The company has brewing and beverage interests across Latin America, Europe, North America, Africa, Asia and South Africa. According to the RTT News report, Heineken NV, based in Amsterdam, Netherlands is also interested in the Brazilian brewer.

SABMiller plc is a holding company, which has brewing and beverage interests across six continents: Latin America, Europe, North America, Africa, Asia and South Africa. The Company is engaged in the manufacture, distribution and sale of beverages.

SABMiller’s portfolio of brands includes international beers, such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as local brands, such as Aguila, Castle, Miller Lite, Snow and Tyskie. The Company is also bottlers of Coca-Cola products.

SABMiller has embarked on a string of global acquisitions aimed at consolidating its position and enhancing its global offering. In May 2009, the Company acquired the outstanding 28.1 per cent minority interest in its Polish subsidiary, Kompania Piwowarska SA, from Kulczyk Holding SA.

In April 2009, the Company's Romanian subsidiary Ursus Breweries SA assumed control over 71 per cent of the issued share capital of Bere Azuga SA in Romania. In February 2010, the Company's subsidiary Ruwenzori Bottling Company Limited acquired the assets of the Ruwenzori water business in Uganda.

Just recently, SABMiller Africa announced an investment of over US $100 million in building a new greenfield brewery in Onitsha, in South Eastern Nigeria. This followed the successful acquisitions of Pabod Breweries Ltd (Port Harcourt) and Voltic Nigeria Limited (Lagos) in 2009. The investments indicate an increased global acquisition strategy that aims at reinforcing the UK firm’s offering in all its areas of operations.

Over the past five years SABMiller has invested over US $1 billion in Africa only. The planned Brazilian investment is an indication of the firm’s commitment to increase its capacity further and to consolidate its position as a leading international brewer in Latin America. According to SABMiller, the expansion strategy is aimed at reinforcing its global offering whilst contributing positively to the local communities in which it operates.

4th April 2011