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Sep 17, 2014

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German merger falls through

Brau und Brunnen first half losses cloud deal

Sept 12, 2000 - German brewers Brau und Brunnen and BrauHolding have called off their planned merger to form Germany's largest drinks group because they couldn't agree on its valuation.

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The provisional agreement to purchase Dortmund-based Brau und Brunnen, reached in June, would have created Germany's largest brewer. BuB's major shareholder, HypoVereinsbank AG, which holds more than 50%, had agreed the company should be brought under the umbrella of the Schoerghuber group, which owns 98% of Bayrische BrauHolding, and was prepared to reduce its stake to some 20% of the new group.

Closer inspection of BuB's accounts, however, changed the Bavarian holding company's view, according to German reports. A takeover would have required a far more wide-ranging and costly restructuring than originally planned. BuB lost DM18 million in the first half of 2000.

A spokesman for Bayrische BrauHolding told Reuters the group was still interested in BuB, but the deal could not go forward in the form originally planned.


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