LONDON (AFX) - SABMiller PLC's China joint venture, China Resources Snow Breweries (CR Snow), is close to securing further acquisitions in China following today's announcement of the purchase of two breweries for a total of 22.4 mln usd.
Industry sources told AFX News the brewer is likely to make an announcement regarding the acquisition of 'more than one' brewery in China next week or the week after.
Sources said two weeks ago that CR Snow was investigating 'a number of acquisitions', with three deals being examined 'in slightly closer detail'.
CR Snow, in which SABMiller holds a 49 pct stake with China Resources Enterprise holding 51 pct, today said it will acquire the brewing assets of Shanxi Yueshan Brewery Co in the northern Shanxi province for 17.7 mln usd.
It will also buy the assets of Inner Mongolia Mengyuan Fine Wine & Brewery Co Ltd for 4.7 mln usd, marking its first move into the region.
Andre Parker, managing director for SABMiller Africa and Asia, said the acquisitions developed the joint venture's footprint across north and north-eastern regions, enhancing potential for the national roll-out of the market-leading SNOW brand.
CR Snow intends to invest a total of 29.1 mln usd in the Shanxi Yueshan brewery, which includes an additional investment of 11.4 mln usd in two phases to upgrade and expand beer production capacity from 1.5 mln hectolitres (hl) to 2.5 mln hl.
The company also plans to invest an additional 2.5 mln usd to expand capacity at the Mengyuan brewery to expand capacity from 500,000 hl to 600,000 hl.
CR Snow sells about 45 mln hl of beer annually, with the SNOW brand selling close to 25 mln hl across the country. simon.meads@afxnews.com sjm/sjm/sjm/jc COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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