The United Kingdom's SAB Miller plans to buyout Australia's largest brewer, the Foster's Group (formerly Carlton and United Breweries) for $A 12.22 billion. The deal would partly put the London-listed brewer in a strategic position to grab the market from Belgium-based Anheuser-Busch inBev.

SAB Miller CEO Graham Mackay wants the deal finalized before his expected retirement. Mackay's bid for the Melbourne-based company would open their expansion into the Asian market.

The sudden move comes in line with Foster's May announcement that it was splitting its wine and beer assets. The final demerger is expected to be completed next year. Japanese brewer, Asahi, is considered a favourite to purchase the Australian brewer. Coca-cola Amatil and America's Molson Coors are also potential buyers.

SAB Miller bought the rights to the Foster's brand in India in August 2006. The purchase amounted to $120 million. Foster's, on the other hand, has experienced meager sales results in Australia in spite of the popularity it has gained through advertising. Its mainstream brand, Carlton Draught, has gained more consumers due to the popularity of its television and online advertisments. Foster's net sales revenue in 2009 is $4.5 billion. The company's net profit increased to $741.5 million while earnings per share increased by 4.6 percent to 38.5 cents.

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