Heineken Agrees To Sell China Operation To Cr Beer In 31 Billion Deal

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Heineken Agrees To Sell China Operation To Cr Beer In 31 Billion Deal

HONG KONG – Heineken NV (HEIN.AS) said on Friday it has agreed to sell its China operations and take a 40 percent stake in a firm controlling the country’s biggest beer maker China Resources Beer Co Ltd (0291.HK) in a $3.1 billion deal.

The deal comes as global beer giants such as Heineken, AB InBev (ABI.BR) and Carlsberg (CARLb.CO) face fierce competition in emerging markets, touted as the growth engine for the world’s biggest brewers.

Under the deal, Heineken will inject its operating assets including three breweries in China into CR Beer for HK$2.4 billion ($2.4 billion), while China Resources Enterprise, which owns CR Beer, will acquire 0.9 percent of Heineken shares for 464 million euros ($537.5 million).

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