Brewer Lion Nathan has received clearance from the Australian Foreign Investment Board for its purchase of Tasmanian brewer J. Boag & Son Pty from San Miguel Corporation.
The clearance was the last remaining hurdle after Kirin Brewery Company's purchase of National Foods from the Philippine-based San Miguel, which
was completed on December 28.
Lion Nathan also said yesterday that Foster's Group Ltd had agreed to bring forward the handover date of J Boag mainland Australia distribution to later this month, from June 2008.
"Boag will pay Foster's A$6.4 million ($7.32 million) for the early termination of the distribution agreement and Lion Nathan will assume control of Boag mainland distribution in mid-January," Lion Nathan said.
Lion Nathan also said that although J. Boag managers Pat Riley, Lydon Adams and Richard Benwell have said they intend to leave the firm, they have agreed to a consultancy until September.
Lion Nathan bought the Tasmanian brewer for A$325 million in November last year.
Lion Nathan previously said it would keep brewing in Tasmania and the acquisition would be earnings per share accretive from full year 2009, the first full year of ownership.
- AAP
