The Beijing-based brewer, Beijing Yanjing Brewery, has acquired a 38% stake in Huiquan Beer Group Co., the largest beer producer in the eastern province of Fujian.
Yanjing acquired the stake for CNY360m (US$43m) and becomes the largest individual shareholder in Huiquan which had sales of CNY900m in 2002.
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Observers believe the acquisition of Huiquan, one of the 10 largest brewers in China, would give Yanjing an opportunity to enter the Taiwanese market, with Taiwan located off the Fujian coast.
The deal marks a further stage in the aggressive expansion of Yanjing which has made some 14 acquisitions in the last four years. The company’s revenues rose by 21% last year to CNY2.8 billion.
