China Resources Beer (Holdings) Co will soon ask investment banks to pitch for a role advising on options for its Chinese brewery joint venture with SABMiller Plc, people with knowledge of the matter said. The State-backed company is seeking advisers as it weighs a potential purchase of all or part of SABMiller’s 49 percent stake in China Resources Snow Breweries Co, the maker of Snow, the world’s best-selling beer, the people said. China Resources has told banks it will send out a formal request for proposals as early as this week, the people said, asking not to be identified as the information is private…Full Article: China Daily Dec 2015

Key Point

  • China Resources may buy SABMiller’s 49% stake in order to allow Anheuser-Busch InBev to secure anti-trust approval in China for the latter’s takeover of SAB Miller.

ChinaAg Comments

  • In October 2015, Anheuser-Busch InBev NV agreed to purchase SABMiller for US$104.2 billion.
  • As of early 2015, five breweries had an 80% share of the beer market in China. These include Huarun Snow Beer Co Ltd, Tsingtao Brewery Co Ltd, Anheuser–Busch InBev (e.g. Budweiser), Beijing Yanjing Brewery, and the Carlsberg Group.
  • In August 2014, Euromonitor International stated that Snow beer (operated by China Resources Enterprises) had a 21.7% market share in China, followed Tsingtao Brewery Co with 15.7%, Beijing Yanjing Brewery with 11.7%, Anheuser-Busch InBev at 11.4%, Henan Jinxing Brewery with 3.4%, and Carlsberg with 2.6%.
  • In February 2013, China Resources agreed to purchase Guangdong’s Kingway Brewery Holdings for HK $6.6 billion (US$851 million).
  • In 1998, China overtook Germany as the number two consumer of beer, and passed the United States as the top consumer in 2002.

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