Asahi's Desire For Permanis Unlikely To Be Quelled

Malaysia-based conglomerate CI Holdings has reportedly rejected Japanese brewer Asahi's bid for its subsidiary Permanis, which is primarily involved in the manufacture and distribution of beverages. Reports earlier last week had suggested that Asahi had launched an offer, which is valued at US$200mn, for Permanis, which was rejected on the grounds that it undervalued the company. Given Asahi's massive investment war chest of around US$5bn for 2011 and the urgency of geographical diversification for the brewer, however, we will not be surprised if Asahi were to return with a better offer and Permanis could be a good addition to the company's portfolio.

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