China re­sources to buy out snow beer unit for $1.6b

The Pak Banker - - 6BUSINESS -

BEI­JING: China Re­sources Beer (Hold­ings) Co. agreed to buy out the re­main­ing stake in Snow Brew­eries, its Chi­nese joint ven­ture with SAB­Miller Plc, for $1.6 bil­lion, smooth­ing the way for a takeover of its part­ner by An­heuser-Busch In­Bev NV. The trans­ac­tion was ap­proved by the board and is sub­ject to reg­u­la­tory ap­proval, China Re­sources said in a state­ment Tues­day. Sale of the stake may help AB In­Bev se­cure Chi­nese an­titrust ap­proval for its ac­qui­si­tion of SAB­Miller. AB In­Bev said Feb. 25 that it was mak­ing progress with Chi­nese reg­u­la­tors on gain­ing ap­proval for the beer in­dus­try's big­gest-ever deal. An­a­lysts at No­mura Hold­ings Inc. and San­ford C. Bern­stein have pre­vi­ously es­ti­mated the stake's value at about $5 bil­lion. Beer sales in China, the world's largest beer mar­ket by vol­ume, are ex­pected to rise 41 per­cent in the five years through 2019 to reach 683 bil­lion yuan ($104 bil­lion), ac­cord­ing to a June re­port from re­search firm Euromon­i­tor.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.