News

CHINA: Interbrew continues Chinese expansion

Most popular

Six trends shaping cannabis beverages

How to win the marketing war in spirits

What will be Pernod Ricard's priorities?

Heineken 0.0's march to global success - Analysis

MORE

Interbrew, the Belgian brewing giant, is to acquire a 50% stake in the Chinese beer operations of the Malaysian company the Lion Group.

In a statement, Interbrew said it would pay US$131.5m for the stake in Lion Diversified Holdings Berhad (LDHB), which is listed on the Kuala Lumpur Stock Exchange.

LDHB realised a total beer volume of 11m hectolitres in 2002 and the deal places Interbrew as the third largest brewer in China in terms of production volumes, achieving almost a 9% market share, with 21m hl sold.

Interbrew will assume management control of the partnership and will also have a call option on the remaining 50%, that can be exercised any time 12 months after the transaction has been completed, for a further consideration of US$131.5m.

John F. Brock, Interbrew's CEO, said: "I am very pleased that this strategic partnership has been formed. It represents a significant step in our overall strategy, and allows local management to do what they do best. It also allows Interbrew the opportunity to share marketing expertise, brand management skills and technical knowledge with our local partners. China continues to command a high priority for Interbrew, and this transaction testifies to our continued commitment to the China market."

The company statement said that the partnership cleared key acquisition criteria for Interbrew: significant potential to grow outside both local and regional markets through strong brands, volumes, economies of scale and critical mass; continued focus on the core lager segment; and solid, dependable management resources.

The transaction is expected to close during the first quarter of 2004 after due diligence, shareholder approval and necessary regulatory approvals in Malaysia.


Related Content

Grupo Damm launches in China as global expansion plans reach next level

Grupo Damm launches in China as global expansion plans reach next level...

China spirit - How Diageo got burned by the baijiu bubble - Part I

China spirit - How Diageo got burned by the baijiu bubble - Part I...

China spirit - How Diageo reinflated the baijiu bubble - Part II

China spirit - How Diageo reinflated the baijiu bubble - Part II...

Heineken unlikely to loosen tight control over China assets - analyst

Heineken unlikely to loosen tight control over China assets - analyst...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?