SABMiller’s Chinese joint venture to buy Kingway's brewery business
SABMiller's joint venture China Resources Snow Breweries (CR Snow) has signed a deal to acquire the Hong Kong-based Kingway Brewery's brewery business for RMB5.38bn($864m).
The transaction will include the brewery's seven breweries, four of which are in Guangdong province, China.
The acquisition is expected to support the CR Snow's production base, sales infrastructure and market position, while providing additional scale and market presence in Sichuan, Shaanxi and Tianjin.
SABMiller Asia Pacific managing director Ari Mervis said: "The acquisition of Kingway gives us greater access to high growth and attractive regional markets in China, thereby enhancing CR Snow's competitive position."
The brewery business has an annual production capacity 14.5 million hectoliters and had reported sales of 9.3 million hectoliters of beer in 2011.