SABMiller has recently launched a hostile takeover bid for the Foster’s group, which could lead to the Australian authorities losing out to tax dodging in a similar way to African nations. The takeover also poses a real reputational risk to the Foster’s brand.
Chris Jordan, Tax campaigner at ActionAid said: “Foster’s better watch out. SABMiller has a proven track record of buying out companies, then shifting the profits it makes into tax havens.
“This happened when SABMiller bought out Accra Breweries in Ghana. The company now systematically moves its Ghanaian profits into Switzerland, Mauritius and the Netherlands, depriving Ghana of the tax revenues it needs to invest in the teachers and doctors needed to escape from poverty.
“ActionAid estimates that an extra 250,000 children could receive an education using vital extra funds if SABMiller stopped avoiding its taxes across Africa.”
ActionAid will be following developments closely to see what the brewing giants decide to do next.