Date
23 March 2017
The full acquisition of CR Snow Beer could boost China Resources Beer's net profit by 70 percent next year. Photo: Bloomberg
The full acquisition of CR Snow Beer could boost China Resources Beer's net profit by 70 percent next year. Photo: Bloomberg

China Resources Beer to take full control of CR Snow

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.

[Chinese version中文版]

– Contact us at [email protected]

VW/JP/CG

Hong Kong Economic Journal

EJI Weekly Newsletter

Please click here to unsubscribe