Photo by: Reuters
Beer maker Anheuser-Busch InBev (AB InBev), which is acquiring SABMiller, has entered into an agreement to sell the latter’s 49% interest in its Chinese joint venture (JV) China Resources Snow Breweries (CR Snow) to JV partner China Resources Beer (CRB) for $1.6-billion.
The sales agreement was in line with AB InBev’s commitment to proactively address potential regulatory considerations relating to its acquisition of SABMiller. The proposed transaction with CRB was conditional on the completion of AB InBev’s acquisition of SABMiller.
This was currently expected to occur in the second half of 2016.
The agreement with CRB was also subject to regulatory approval in China.
SABMiller CEO Alan Clark said the CR Snow JV was established in 1994 with the brand developed in the same year. “Since then, Snow has grown to become the world’s largest beer brand by volume, selling more than 100-million hectolitres last year.
“Since forming the JV, 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.”