Anheuser-Busch InBev, the world’s largest brewer, announced late Tuesday that the Belgian company has reached an agreement to sell SABMiller PLC’s stake in a Chinese beer joint venture to partner China Resources Beer (Holdings) Co. Ltd. According to SABMiller it was as a part of setting up the world’s biggest beer brand and had about 98 plants crosswise China.
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Anheuser-Busch InBev is nearing a deal for the sale of SABMiller’s Chinese beer business to China Resources Beer Holdings, the Wall Street Journal reported, citing sources familiar with the matter.
China Resources Snow Breweries had a net asset value of HKUS$27.2 billion (US$3.5 billion) at the end of previous year, the statement said. Upon completion of the transaction, CR Snow will become a direct wholly-owned subsidiary of CRB.
Since 1994, the government controlled brewer and SABMiller has been partners in the joint venture called CR Snow.
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The deal is contingent on the AB InBev-SABMiller going through. This is now expected to occur in the second half of 2016. However sources say the company changed its plans as keeping that stake would slow down the regulatory approval process of AB InBev’s takeover of SABMiller. “Since forming the joint venture we have enjoyed a mutually beneficial partnership with CRB and together we have achieved great things in the Chinese beer market over the last 22 years”, SABMiller Chief Executive Alan Clark said in a statement.
