Efes Breweries International has announced it has acquired a majority stake in Serbia's Pancevo Brewery, which is located outside Belgrade.

In a statement Efes said it had acquired 63% in Pancevo through a US$6.5m cash injection.

The money will be invested in product quality and technical infrastructure.

A further US$10m is also marked for investment through to 2005 to raise capacity from the current 40m litres a year.

The Pancevo Brewery produces three brands - Weifert, Karsten and Standard.

It is the second acquisition in weeks for Efes, which recently bought the Russian Amstar Brewery, thanks to a US$25m loan from the European Bank for Reconstruction and Development.