CHINA: Kirin Holdings, China Resources Enterprise sign JV deal
Kirin Holdings forms soft drinks venture with China Resources Enterprise
Kirin Holdings has signed a deal to establish a soft drinks joint venture in China with China Resources Enterprise.
Japan-based Kirin will spend US$400m to take a 40% stake in the joint venture. It said today (24 January) that it will acquire 40% of the holding company of China Resources Enterprise's non-alcoholic drinks subsidiary, C'estbon Food & Beverage (Shenzhen) Co.
Both firms have yet to agree on the full details of the venture, Kirin added. Its move is the latest in a string of overseas mergers and acquisitions as the brewer seeks to reduce its reliance on the sluggish Japanese drinks market.
Beer is off-limits for the Kirin venture, because China Resources Enterprise already operates a beer joint venture with SABMiller in China, named China Resources Snow Breweries.
C'estbon Food & Beverage has annual net sales and profits of HKD1.6bn (US$205m) and HKD144m respectively. It employs 2,810 people.
SABMiller's entry into Belgium's speciality beer market makes sense and more niche deals are likely across Europe's craft beer sector....
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