Belgian Brewer Wins Battle For John Labatt

Belgium’s Interbrew SA has won a competition for John Labatt Ltd., offering $1.94 billion in a deal that would create the world’s thirdlargest beer company.

The offer from Interbrew, Belgium’s leading brewer, is about $300 million higher than an earlier buyout proposal from Onex Corp. that Toronto-based Labatt rejected as too small.

The board of directors at Labatt, Canada’s second-largest brewer, unanimously backed the Interbrew offer, made public Tuesday. Onex said it would not increase its offer. The Interbrew offer must now be approved by Labatt shareholders.

Labatt Chairman Samuel Pollock said Labatt and Interbrew are “very complementary.”