SABMiller, the world's second largest brewer, agreed on Wednesday to buy a majority stake in Italy's family-owned Peroni for up to €246 million ($283 million) in its first move into Western Europe.
The group which bought US brewer Miller last July for $5.6 billion and makes Pilsner Urquell, Miller Lite and Castle beers, said it expected to hold 80 to 100 per cent of Peroni, maker of Nastro Azzurro beer, over the next three to five years.
SABMiller said in a statement its initial stake would be between 51 per cent and 60 per cent. A 60 per cent stake would mean an investment of €246 million and put Peroni's enterprise value at €563 million.
SABMiller, with operations in Africa, the US, eastern Europe and China, added that the transaction was not subject to any conditions and that closing of the deal was expected within three weeks.
The group sees operational synergies leading to cost savings of not less than €9 million by the end of the third full financial year.
"Italy is one of only two Western European markets to be experiencing real volume growth, at some three per cent, well ahead of the regional trend," said SABMiller chief executive Mr Graham Mackay in a statement.