Fuller's now a 'target for takeover'
A City analyst has claimed a slew of family brewers are possible takeover targets in the wake of Greene King's acquisition of east midlands firm Hardys & Hansons.
James Dawson, of Charles Stanley Securities, has claimed that Fuller's, Young's, Adnams, Brakspear, Shepherd Neame and Thwaites are all prime takeover candidates now.
Dawson, who upgraded his recommendation on Fuller's shares from hold to buy, said: "In our opinion this deal puts these groups in play, especially as Wolves & Dudley Breweries may feel pressure to respond to the Hardys deal."
On the position at Fuller's, Dawson added: "The acquisition of Gales took the combined estate to around 360 sites. With good geographic focus and well recognised beer brands this must make this stock a genuine target."
The £271m price paid for Hardys & Hansons by Greene King is the highest price multiple the company has ever paid for an acquisition.
One City source said: "The current prices being paid for pub assets could well tempt shareholders at smaller regional brewers if the right offer is tabled."
