Coca-Cola mulls bid for Fraser & Neave

Drinks giant Coca-Cola Co is said to be mulling a bid for the beverage unit of Singapore’s Fraser & Neave.

The unit, which includes Fraser & Neave’s dairy and soft drinks business, could be worth as much as $3bn according to Bloomberg.

A deal would give Coca-Cola the largest share of soft drinks sales in Malaysia and Singapore. Fraser & Neave’s soft drinks division generated S$759 million in 2011.

Coca-Cola declined to comment.

It is understand Japanese brewer Kirin is also considering making an offer but ThaiBev has confirmed that it is not interested in upping its 22% stake in Fraser & Neave.

Meanwhile, Fraser & Neave is believed to be holding out for more cash than the $4.1 billion offered by Heineken to take full control of joint venture Asia Pacific Breweries. Heineken’s offer expires tomorrow (3 August) and Fraser & Neave has suspended share trading pending an announcement.