SABMiller, China JV to buy Kingway's brewery assets for S$864 mn

SABMiller Plc, one of thwe world's largest brewers, yesterday said that China Resources Snow Breweries Ltd, its joint venture with China Resources Enterprise (CRE), will buy  the brewery assets of Chinese beermaker Kingway Brewery Holdings Ltd for S$864 million.

Dutch brewer Heineken International holds a 21-per cent stake in Kingway, which produces, distributes and markets beer in more than 20 provinces under "Kingway", "Kingway Draft" and "Super Fresh Kingway" brand.

Hong Kong-based Kingway, a subsidiary of state-owned Guangdong Holdings Group, the biggest Hong Kong-based enterprise owned by the Guangdong state, is said to be the third-largest beer company in Guangdong province with approximately 15 per cent market share, according to a Piper Jaffray report.

In March 2012, Guangdong-based Kingway Brewery conducted a strategic review and decided to sell equity stakes in six breweries, all with a portfolio of beer and beer-related trade marks, domestic and overseas distribution networks. The deal does not include two beer plants.

Reuters had then reported that Anheuser-Busch InBev NV and two Chinese brewers were in the race to buy a stake, potentially worth as much as $700 million. (See: Anheuser-Busch, two Chinese brewers in race to buy stake in Kingway Brewery)

Anheuser-Busch InBev and Beijing Yanjing Brewery Co had last year tabled bids for Kingway Brewery, but a deal did not materialise due to differences in valuation.