SABMiller linked with bid for Foster's beer
The move will create Treasury Wine Estates, with A$1.9 billion (1.2bn) in revenues and vineyards from Hunter Valley near Sydney to California's Napa Valley, while the new Foster's will remain Australia's largest brewer with revenues of A$2.6bn.
Treasury Wine - with brands including Beringer, Penfolds and Wolf Blass - will rank behind Constellation Brands as the world's second-largest wine company.
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Hide AdThe split could elicit interest for Foster's beer group, which is valued at $10bn (6bn) and is one of the last big prizes in a globally consolidating beer market.
Theo Maas, a partner at Arnhem Investment Management, said: "People have looked at it quite closely.
"It is hard to see in a strongly-consolidating beer market that this asset - which is one of the most profitable markets in the world - will stay independent."
Foster's received a surprise offer worth $2.5bn last year for its under-performing wine business from US-based private equity firm Cerberus, which it rejected as too low.
The high value of the Australian dollar is seen as one obstacle for overseas investors that might be interested in the units.