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.
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 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).