DALIAN, China Tsingtao Brewery Co. plans to acquire an equity stake in Asahi Breweries Ltd. subsidiary Hangzhou Xihu Beer Asahi Co., The Economic Observer reported Monday.
Asahi Breweries owns 55 percent of Xihu Beer through a Hong Kong subsidiary. The remaining 45 percent is owned by Hangzhou Industrial Assets Management Co., which is run by the government of Xihu Beer's home city of Hangzhou in Zhejiang Province. Tsingtao is expected to buy the latter firm's stake for nearly 2 billion yuan (US$293.9 million), or about 25 billion yen.
The move is seen as part of the deepening cooperation between Tsingtao and Asahi Breweries in China. Asahi Breweries acquired about 20 percent of Tsingtao's stock last year.
China is one of Asahi Breweries' largest markets. The company aims to double overseas sales of its flagship Super Dry beer to 10 million cases in three years, and the Chinese market is supposed to account for most of the growth.
An Asahi Breweries spokesmen said the firm had not heard about Tsingtao's plans to invest in Xihu Beer. If the deal goes through, it will likely make Asahi Breweries' alliance with Tsingtao a bigger force in the Chinese market.
(C) 2010 Asia Pulse Pte Ltd.
Asahi Breweries owns 55 percent of Xihu Beer through a Hong Kong subsidiary. The remaining 45 percent is owned by Hangzhou Industrial Assets Management Co., which is run by the government of Xihu Beer's home city of Hangzhou in Zhejiang Province. Tsingtao is expected to buy the latter firm's stake for nearly 2 billion yuan (US$293.9 million), or about 25 billion yen.
The move is seen as part of the deepening cooperation between Tsingtao and Asahi Breweries in China. Asahi Breweries acquired about 20 percent of Tsingtao's stock last year.
China is one of Asahi Breweries' largest markets. The company aims to double overseas sales of its flagship Super Dry beer to 10 million cases in three years, and the Chinese market is supposed to account for most of the growth.
An Asahi Breweries spokesmen said the firm had not heard about Tsingtao's plans to invest in Xihu Beer. If the deal goes through, it will likely make Asahi Breweries' alliance with Tsingtao a bigger force in the Chinese market.
(C) 2010 Asia Pulse Pte Ltd.
