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The fight for Independent Liquor is coming to a head with DB's Singapore-based owner saying it may enter the fray - despite earlier suggesting it was not interested.
The decision opens up the prospect of arch rivals DB and Lion Nathan going head to head in a bidding war for the late Michael Erceg's liquor empire, with a range of other potential trade and private equity buyers.
DB's Singapore-listed 100 per cent owner Asia Pacific Breweries said DB had applied to the Overseas Investment Office to check whether there were any problems with it buying the New Zealand business of Independent Liquor (NZ).
"At this preliminary juncture we are still investigating this venture, which may or may not lead to an acquisition. The application to the OIO is just one part of the process," said APB, which is itself controlled by Dutch giant Heineken.
APB's interest in Independent contrasts with comments from DB's managing director Brian Blake this year.
He said his company would not be entering the bidding war, querying whether the company would work as successfully without the "marketing genius" of Erceg.
He also questioned whether companies that sold 12 per cent alcohol alcopops were undermining the concept of encouraging socially responsible drinking.
Blake's office referred questions yesterday to DB's corporate affairs general manager Mark Campbell, who said he could not comment on the possible purchase or the change in tack by DB. "It's our parent company who are the ones who can comment on this, so we're hamstrung I guess at the moment. It's early days and they're going to run it out of Singapore."
Sarah Koh, APB's Singapore-based corporate communications general manager, said Blake's comments were made some time ago and "things do change".
She said an application may eventually be made to the Commerce Commission for clearance to buy Independent.
Lion Nathan has already gained clearance from competition authorities on both sides of the Tasman to buy Independent.
Diageo Australia has applied for clearance in Australia, while Foster's has indicated it is "having a look" at Independent but has not made any clearance applications.
Forsyth Barr analyst Guy Hallwright said yesterday he suspected that if DB applied to buy Independent here it would get clearance from the Commerce Commission since Lion had.
"I can't see how you could clear it for Lion and not clear it for DB. It would be difficult."
Hallwright said DB taking Independent could make as much sense as Lion making the purchase.
"You're buying a good portolio of ready-to-drinks, you've got the distribution network, and you're buying some beer ... manufacturing under licence."
Macquarie analyst Callum Bramah said Lion might be more likely to win a bidding war against DB because it could milk synergies with Independent on both sides of the Tasman.
"So when you're trying to assess who can pay the highest price [it might be Lion]."
But Bramah said it was logical for DB to be looking at Independent.
