China Resources Beer Holdings Co. Ltd. (00291.HK), formerly China Resources Enterprise Ltd., has agreed to buy the remaining 49 percent stake it doesn’t own in CR Snow Beer for US$1.6 billion from the world’s largest brewery AB InBev.
The purchase was part of AB InBev’s bigger plan to take over SABMiller, the world second-largest beer maker, which originally owned the stake, the Hong Kong Economic Journal reported on Thursday.
The deal implies a total value of HK$25.4 billion for CR Snow, representing a discount of more 50 percent to the target’s market value, JPMorgan & Chase said.
Macquarie said the acquisition could boost China Resources Beer’s net profit by 70 percent next year.
The takeover deal between the two brewery giants is subject to anti-trust approvals from various jurisdictions including the United States and China.
AB InBev has agreed to pay SABMiller as much as US$20 million should the deal be disapproved by the authorities.
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