Talks have broken down between Kirin and The Coca-Cola Company, who owns a 30% stake in the Australian business, and neither company has provided details as to why the AUS$7.7bn offer was refused.
However, in November 2008 when the initial announcement of the proposal was made, CCA said the offer was “materially deficient”.
Lion Nathan CEO, Rob Murray, said: “We made a very attractive offer at a 30% premium in very challenging market conditions. It’s disappointing that CCA’s shareholders will not have the opportunity to consider our proposal and enjoy the benefits that the merger would have delivered. We are not, however, prepared to invest further effort pursuing this transaction unless all parties are willing to try to facilitate an outcome. We will continue to focus on delivering strong returns for our shareholders.”
Kirin Holdings also resolved the termination of discussions as the company determined that having further discussions wouldn’t deliver benefits.
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