SAB still "considering bid for Bass Brewers

South African Breweries (SAB) is thought to be still interested in buying Bass Brewers despite spending its cash on other deals.

It said it was still "committed to participating in industry consolidation", suggesting that it was looking for more acquisitions.

This reportedly includes the former Bass brewing business, which Interbrew may still have to sell or break up to satisfy the Competition Commission. The Government has been ordered by the High Court to review its decision to block the Belgian brewer's £2.3bn acquisition.

City watchers suggested earlier this week that SAB may have lost interest in Bass Brewers because of its investment overseas, including a £56m deal for three Chinese breweries.

It has also revealed that pre-tax profits for the year to March 31 were down by seven per cent to about £450m, which was at the upper end of analysts' forecasts. Turnover was down by three per cent to about £3bn.

Chief executive Graham Mackay said the results were hit by devaluation of the rand and falling volumes in South Africa, where it has 98 per cent of the beer market and owns the market-leading Castle lager.

SAB has been building its global interests because of pressures in South Africa, where it believes beer has been losing out to spending on mobile phones, gaming and the lottery.

It is particularly pleased with the success of its central European business, which was created out of its acquisition of the Czech Republic's Pilsner Urquell and Radegast two years ago.