China Resources to buy SABMiller's Snow beer stake
State-backed China Resources Beer (Holdings) Co, currently in a joint venture (JV) with SABMiller, is considering a potential purchase of all or part of SABMiller’s 49% stake in China Resources Snow Breweries Co. China Resources has requested investment banks to pitch for an advisory role to aide them in making this decision, saying it will choose an advisor before this year is out.
- On 11 November 2015, Anheuser-Busch InBev (AB InBev) made a formal offer to buy SABMiller, sealing a long-awaited deal. Read the full story here.
According to Bloomberg, several banks recently contacted China Resources offering financing for a potential buyout of the Snow JV stake. In order to secure Chinese antitrust approval for its recent acquisition of SABMiller, AB InBev may need to sell its stake in the company. InBev has yet to decide whether or not it will sell its shares, though China Resources will be the most logical buyer, should the decision be in favour of selling.
The SABMiller and China Resources JV began in 1994 with just two breweries. It currently operates more than 90 breweries across China.