SABMiller acquires Chinese beer firms

28 August 2007

SABMiller has increased its stake in China''s fast-growing beer market with agreements to acquire four brewers for $79 million, in separate transactions, in mainly cash deals. Two of the breweries to be acquired are in Liaoning province one in Anhui and one in Hunan province.

The total investment cost for the four acquisitions is $79m, which includes a cash consideration of $57.

SABmiller says it has been beating local Chinese brewer Tsingtao in China and claims to have become the biggest Chinese brewer by sales volumes last year.

SABMiller, which makes brands such as Peroni and Hansa Pilsner, said it was making the acquisition through its 49-per cent stake in China Resources Snow Breweries (CR Snow). CR Snow was formed in a joint venture between SABMiller plc and China Resources Enterprise in 1994.

CR Snow will acquire an 80-per cent equity interest in Liaoning Yalujiang Brewery Company Limited and the brewing assets of Huludao Juhua Brewery Company Limited through a joint venture in which it will own an 85 per cent equity interest.

It is also acquiring the brewing assets of Anhui Wanpi Brewery Company Limited and a 100 per cent equity interest in Hunan Xinghua Brewery Company Limited.