A joint bid for Fosters by Molson Coors Brewing (NYSE:TAP) and Mexicos Grupo Modelo seems unlikely after Modelo executives chose not to put the proposal up for vote at a board meeting on Monday, according to The Wall Street Journal.
The Corona beer maker and the U.S.-Canadian beer giant had been exploring the idea of making a joint offer for Australias largest brewer, according to the report, which cites people close to the matter.
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Fosters, which recently spun off its wine business, is considered an attractive acquisition target for larger brewers and private-equity companies. While the company, which has a market capitalization of $9 billion, has not officially started looking for a suitor for either business, according to the sources, it would consider offers.
The two companies had not yet reached out to Fosters, but were reportedly studying the possibility of a joint venture with their financial advisors.