The US and Chinese brewing groups, Anheuser-Busch and Tsingtao, have announced that they have completed the deal which will see Anheuser-Busch raise its stake in the Chinese company to 27% over the next seven years for US$182m. The deal was originally announced in October and was completed yesterday.
Anheuser-Busch, which has owned a 4.5% stake in Tsingtao since 1993, is to increase its participation in Tsingtao to 9.9% immediately and extend its share to 27% over seven years. The announcement said that A-B had paid US$116.4m at the closing of the deal and will pay an additional US$65.2m within 12 months. The Chinese government will remain the largest shareholder in Tsingtao with a 30.56% stake. But A-B will be the largest private shareholder.
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Tsingtao, which has an estimated 12.8% share of the Chinese beer market and exports to some 40 countries, has said it will use the cash injection to improve brewing assets, build new facilities and finance acquisitions.
