Australia’s mining magnate, Andrew Forrest, is eyeing to buy the iconic Australian wine brand Penfolds, after its parent company Treasury Wine Estates floated the idea of demerging the brand earlier this year.
It’s reported that Tattarang, the invest firm of Australia’s multi-billion Forrest family, is examining Penfolds brand to make an offer, according to news report by Australian media The Advertiser. It’s not clear if an offer has been officially made to TWE.
Tattarang just finished a purchase of another Australian brand R.M. Williams, a footwear and clothing brand, for AU$190 million last week.

The company expressed its interest in investing Australian companies to grow its national and community reach.
Treasury Wines Estates in April revealed that it is looking at options to demerge its most popular wine brand, Penfolds, into a separate listed company.
Arguably the best known Australian wine brand, Penfolds is estimated by analysts to worth as much as AU$10 billion.
However, with the onslaught of Covid-19 in its key export markets, first in its most profitable market in China, followed by the US and Europe and its domestic market, TWE stated earlier in August that it will not provide financial guidance for F21.
TWE owns other brands such as Wolf Blass, Beringer, Rawson’s Retreat but Penfolds contributes to over half of the group’s overall earnings.
What could also affect Penfolds’ valuation is the worsening relations between Australia and its biggest market, China.
China launched anti-dumping and anti-subsidy investigations into Australian wine exports, majority of which came from TWE, and is threatening to levy 200% tax on Australian wine.
If enforced, Australia’s AU$1.1 billion wine exports could be jeopardized.