F&N seeks acquisitions to bolster market share in South-east Asia

SINGAPORE (Aug 17): Fraser & Neave, the drinks-maker controlled by Thailand's richest man Charoen Sirivadhanabhakdi, is searching for acquisitions to bolster its market share in Southeast Asia after its war chest grew to nearly $1 billion with sales of beer assets.

A potential target is Vietnam Dairy Products JSC, also known as Vinamilk, according to Lee Meng Tat, F&N's chief executive officer for non-alcoholic beverages. Vietnam's largest milk producer is an example of what F&N wants in an acquisition: a company with market presence, well-known brands, and a strong distribution network, he said.

"The ideal situation is of course to acquire," said Lee, referring to F&N's efforts to expand in South-east Asia, where he said the company is a "distant third" to US soft drinks giants PepsiCo Inc and Coca-Cola Co. "That would give us a much faster way into the market."

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