CHINA: Carlsberg to spend US$460m on Chongqing control
By Olly Wehring | 4 March 2013
 |
Carlsberg will take management control of Chongqing |
Carlsberg has lined up a stock transaction that will see it take majority control of Chongqing Brewery in China.
The brewer, which announced its intention last week to raise its 29.7% stake, said earlier today (4 March) that it will launch a “partial takeover offer” for up to 30.29% of the shares in Chongqing. The majority of the new stake, 20%, will be bought from Chongqing's second largest shareholder, Chongqing Beer (Group) Co.
The offer, for CNY20 per share, values the extra stake at CNY2.9bn (US$462.1m).
If successful, the purchase will allow Carlsberg to “directly manage the company, drive greater synergies and leverage the expanded production footprint across several new provinces in China”.
“Our Asian business is very important for our long-term growth strategy and we are very pleased that we now can take this important step forward in China,” said Carlsberg’s president & CEO, Jørgen Buhl Rasmussen. “We believe that, through our commitment to develop CBC’s strong local brands, Shancheng and Chongqing, … we will strengthen the business significantly, both operationally and financially.”
Carlsberg inherited the holding when it teamed up with Heineken to acquire Scottish & Newcastle in 2008. It raised its share to the current level in 2010.
Chongqing Brewery is listed on the Shanghai Stock Exchange.
Expert analysis
Carlsberg A/S - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report
Datamonitor's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage.
Sectors: Beer & cider, Mergers & acquisitions
Companies: Carlsberg, Heineken
View next/previous articles
4 Mar 2013 -
Currently reading -
CHINA: Carlsberg to spend US$460m on Chongqing control
4 Mar 2013 -
Related research
Carlsberg A/S - SWOT, Strategy and Corporate Finance Report
Carlsberg A/S - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials, and corpo...
Carlsberg A/S - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report
Datamonitor's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage....
Carlsberg AS (CARL B) - Financial and Strategic SWOT Analysis Review
Carlsberg A/S (Carlsberg) is brewing company, which engages in the production, retail and marketing of beers and non-alcoholic beverages. It also engages in the development and sale of real estate and operation of the Carlsberg Research Center. The c...
Related articles
just For Subscribers - The week in drinks
Here are the ten most viewed, subscriber-only items on just-drinks this week:
In the Spotlight - Coca-Cola's "secret recipe" on eBay
Sales of sparkling cola are under pressure, but one man still believes its stock is high. Cliff Kluge, a pilot from Georgia, told ABC News this week he may have found the original recipe for Coca-Cola - and is selling it on eBay for as much as US$15m.
Analysis - Molson Coors, Carlsberg ready for craft "threat"
Molson Coors and Carlsberg are the best-placed multi-national brewers to "weather the storm" of craft beer and neutralise its "threat" to larger players, an analyst has said.
There are currently no comments on this article
Be the first to comment on this article