Australia approves Foster's sale to SABMiller

A patron lifts a glass of beer in Sydney. A takeover of Foster's has been expected since it split its beer and wine business

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The Australian government has approved brewer SABMiller's 9.9bn Australian dollars ($10.2bn; £6.5bn) takeover of Foster's.

It did, however, pose a condition that the company must keep management of Foster's operations in Australia.

UK-based SABMiller has also agreed not to relocate any brewing facilities offshore.

The final step will be a vote by Foster's shareholders on 1 December, which is expected to pass the deal.

"SABMiller has agreed to a number of undertakings which recognise the significance of Foster's to our economy and to our community, and support Australian jobs," said Australian Treasurer Wayne Swan in a statement.

Last week, SABMiller raised its cash takeover offer for Foster's to $5.40 a share.

This came after a tax ruling from authorities in Australia to ensure that Foster's shareholders don't lose out because of a capital return tax.

SABMiller said it expects to complete the takeover by the end of this year.

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