Lion Nathan has secured Commerce Commission approval to buy the late Michael Erceg's Independent Liquor but there is also strong interest from a range of other potential buyers.
Independent finally confirmed yesterday that the formal sale process was under way.
Andrew Sutherland, the head of investment banking at UBS -
which is managing the potential sales process for the liquor firm - said many parties had indicated an interest.
"When you're talking about a quality business like this, you've got to expect a wide variety and that's exactly what we have here," Sutherland said.
He stressed UBS had not had significant discussions with anyone yet.
Lion also remained coy yesterday about whether it would actually bid.
Commission chairwoman Paula Rebstock said it was satisfied the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in any relevant markets.
Lion was cleared to take full control of Independent and the detailed reasons for the decision will be available later.
"Obviously, we're pleased that approval has been given," James Tait, Lion's Sydney-based corporate affairs director, said. However, the company did not have enough information to know whether it would try to buy Independent.
Meanwhile, an Independent shareholders' statement yesterday announced the start of a formal process for the "potential sale" of the business. A price tag of between $700 million and $1.2 billion has been floated before for the business.
Last month, Macquarie Research said in Sydney a price tag of below $985 million-$1 billion could make the buy acceptable to Lion.
Macquarie analyst Callum Bramah said yesterday: "We're definitely on the side of the downside of that because we see there's massive integration issues."
He said the culture at Independent was different from that of the more corporate Lion.
He expects all major players in the liquor industry - including Lion, Coca-Cola Amatil and San Miguel - to now "run the ruler" over Independent "if for no other reason than insights".
In May, it was reported Independent shareholders were looking at what to do with the business after Erceg's death in a helicopter crash last November.
Since then, Independent said yesterday, options had been evaluated and UBS would manage a process for potential sale that was expected to take up to four months.
Interested parties were being invited to make submissions and, based on a review of these, a "number of groups will be invited to participate in the sale process".
Bramah, meanwhile, expressed surprise at the commission's clearance. Buying Independent would give Lion a significant share of the ready-to-drink (RTD) markets on both sides of the Tasman. The go-ahead contrasted with Australian authorities turning down Coca-Cola's planned purchase of beverage company Berri.
Lion told the commission that competition in the NZ beer, RTD and spirits markets would not be cut greatly if it bought Independent.
Independence movement
November 2005: Independent founder Michael Erceg dies in a helicopter crash.
May 2006: UBS confirms it is advising the Erceg family on ownership options.
July 2006: Lion Nathan applies to the Commerce Commission for clearance to buy Independent.
Latest: Commerce Commission gives Lion the go-ahead and Independent starts formal process for "potential sale".
Lion Nathan has secured Commerce Commission approval to buy the late Michael Erceg's Independent Liquor but there is also strong interest from a range of other potential buyers.
Independent finally confirmed yesterday that the formal sale process was under way.
Andrew Sutherland, the head of investment banking at UBS -
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