Lotte denies reports on takeover of Oriental Brewery

By Nam Kwang-sik
SEOUL, Feb. 6 (Yonhap) -- South Korea's Lotte Group on Friday denied a news
report that it is considering forming a consortium with Japan's biggest beer
maker Asahi Breweries Ltd. to buy Oriental Brewery (OB) Co.

Japan's Nikkei economic daily reported that Lotte and Asahi are mulling jointly
purchasing OB, South Korea's second-largest beer maker, for up to 150 billion yen
(US$1.6 billion).
"There has been no move on the acquisition of OB," said Choe Kyung-in, a Lotte
spokesman. "The group has not received any proposals from Anheuser-Busch InBev."
Anheuser-Bush InBev, the world's largest brewer by sales, wholly owns OB which
has a market share of 40 percent. Anheuser-Bush InBev plans to invite bidders for
OB late this month.
Market watchers, however, say Lotte will bid for OB and form a consortium as the
sale price of the brewer is too high.
"Lotte is likely to bid for OB as the brewer is a blue-chip company. Lotte
should form a consortium with other companies due to the high price," said an
analyst who asked not be identified, citing company policy.
The sale price of OB is estimated to reach up to $20 billion.
ksnam@yna.co.kr
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