Asahi goes flat on Foster's beer

At an earnings briefing in Japan, the president of Asahi, Naoki Izumiya, said he had no interest in the Foster's beer assets which include leading brands such as VB, Carlton Draught and Cascade.

"The price is expensive and recently (Australia's) market is looking tough," Mr Izumiya told reporters in Tokyo.

The decision last year by the Foster's board to split its beer division from its global wine operation sparked speculation that a rival brewing company would swoop on the beer assets. Asahi and the British brewer SABMiller were touted as the front runners.

But as yet no company has come forward with a takeover proposal, increasing the odds that Foster's will strike its demerger without the hur-dle of a bid disrupting the process.

Japanese brewers and food makers have been particularly interested in buying overseas consumer goods businesses to broaden their exposure outside their stagnating domestic markets.

In 2009 Kirin, which also owned National Foods, launched a $3.5 billion acquisition of Lion Nathan, giving it a range of popular beers and beverages.

Two years ago Asahi Breweries bought Schweppes Australia's soft drink operation for $1.185 billion.

In August, Mr Izumiya said the company was considering expanding its ties with South Korea's top beverage company, Lotte Group, and that it wanted to lift its stake in Tsingtao Brewery of China.

Foster's will release its half-year results next week, when it is expected to provide further details about its proposed demerger.