Sunday 21 October 2018

Heineken strikes £2.3bn deal to expand in China

The brewer is taking a 40% stake in China Resources Beer, which controls the country’s biggest beer maker.

Heineken beer (AP)
Heineken beer (AP)

By Associated Press Reporters

Dutch brewing company Heineken has said it is buying a 40% stake in the company that controls China’s biggest beer maker, China Resources Beer (CRB).

Heineken said it would invest 3.1 billion dollars (£2.37 billion) in the venture as it seeks to expand in the world’s biggest beer market.

It said Chinese drinkers are embracing imported beers and that CRB, producer of the best-selling Snow lager, lacks a premium overseas brand.

The brewer is aiming to keep pace with Anheuser-Busch InBev (Heineken/PA)

The stake in CRB would significantly boost Heineken’s distribution reach.

Heineken is trying to keep pace with Anheuser-Busch InBev, the world’s largest brewing company, which in 2016 added to its heft by taking over its closest rival, SABMiller.

AB InBev is worth 174 billion euro (£154 billion), multiple times Heineken’s 51 billion euro (£45 billion).

Press Association

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