Heineken Selling Chinese Operations to CR Beer
02 Agosto 2018 - 11:17PM
Dow Jones News
By Kenan Machado
HONG KONG--Heineken N.V. (HEINY) Thursday said it is selling its
Chinese operations to a local brewer to focus on selling premium
beer in world's largest beer market by volume.
The deal comes after the world's second-largest beer producer
struggled to get the Chinese to buy its entry-level fare over more
popular local brands. It also gives Heineken a significant foothold
in what is forecast to be the biggest contributor to premium volume
growth in the next five years.
Heineken said it will sell its Chinese operations to Hong
Kong-listed China Resources Beer (Holdings) Co. Ltd., or CR Beer,
for HK$2.4 billion (US$305.76 million) while picking up a minority
stake in its holding company for HK$24.3 billion. Combined, the
deal would entail an investment of HK$24.3 billion in the Chinese
business by the Dutch brewer, a statement said.
CR Beer makes and sells Snow-branded beer in China, one of the
top selling beers in the world although it is not widely available
outside of the country. Its parent will also buy a 0.9% stake, or
5.2 million shares, in Heineken for 464 million euros (US$4.22
billion) or EUR88.66 a share.
Heineken will license its namesake brand in China to CR Beer on
a long-term basis while the Chinese firm will be able to use the
Dutch brewer's global network to sell its Snow brand of beers, the
statement said.
"CR Beer's deep understanding of the local market, its scale and
best-in-class distribution network will create a winning
combination in the growing premium beer segment in China," Heineken
chief executive officer Jean-François van Boxmeersaid said.
Sales of premium and lucrative beer categories such as
Weissbier, Weizen, wheat beer and stout have improved in China,
according to Euromonitor International. This is amid slower growth
with 2017 being the fourth successive year of decline in terms of
total volumes sold, the research firm said.
-Write to Kenan Machado at kenan.machado@wsj.com
(END) Dow Jones Newswires
August 02, 2018 22:02 ET (02:02 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Heineken (EU:HEIO)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Heineken (EU:HEIO)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024