Carlsberg buys additional stake in China’s Chongqing Brewery for $379 million
10 Jun 2010
Carlsberg A/S, the world's fourth-biggest brewing company, today said it was hiking its stake in China's Chongqing Brewery Co. Ltd by 12.25 per cent at a cost of $379 million, as the Danish brewer seeks to enhance its presence in one of the world's fastest-growing beer markets.
It entered into a deal today to acquire the additional 12.25 per cent from the Chongqing province government, which was also being sought after by Carlsberg's rivals, SAB Miller and Anheuser-Busch InBev.
Both SAB Miller and Anheuser-Busch InBev also operate in China.
Through this deal Copenhagen-based Carlsberg, which has popular brands like Carlsberg, Tuborg, San Miguel and others, will hike its stake from 17.46 per cent to 29.71 per cent.
Based in Chongqing province in southern China, CBC, which is owned by the local government, operates 15 breweries in the country.
CBC is market leader in its home province and operates in the surrounding provinces of Sichuan, Guizhou, Guangxi and Hunan and in the eastern Chinese provinces of Anhui, Zhejiang and Jiangsu.
CBC holds a market share of about 80 in the provinces that it operates and in 2009, its volumes were around 10 million hectolitres.
Carlsberg received the original stake in CBC, when it formed a consortium with Heineken to acquire UK beer maker Scottish & Newcastle (S&N) for $15.4 billion in 2008. (See: Carlsberg-Heineken to acquire S&N for $15.4 billion)
The deal enabled Carlsberg gain control of S&N's operations in France, Greece, Vietnam and China, as well as Baltic Beverages Holdings AB.
