SAB Miller is plotting a £7bn bid for the beer division of Foster’s Group.

The Australian brewer earlier this year unveiled plans to sell off its struggling wine business. That move led to speculation that it could be the subject of a bid from the likes of SAB Miller and Molson Coors.

However, Japan’s Asahi Breweries has now reportedly emerged as a contender to buy Carlton & United Breweries, the company’s beer division.

SAB Miller, meanwhile, already owns rights to the Foster’s brands in India and the US. Its portfolio of brands also includes Peroni and Grolsch.

As well as brewing Foster’s, Carlton & United produces Victoria Bitter, Australia’s most popular beer brand. Share in Foster’s Group rose by almost 8% in Monday trading on the Australian Securities Exchange to their highest level since early 2008.

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