Advertise with fastmoving.co.za
 
 

Carlsberg buys stake in China's Chongqing
Carlsberg buys stake in China's Chongqing

Carlsberg buys stake in China's Chongqing

MARKETING NEWS

IOL Business/ Reuters - Dec 6th 2013, 09:00

Copenhagen/Shanghai - Danish brewer Carlsberg upped its stake in China's Chongqing Brewery to 60 percent, strengthening its foothold in the world's largest beer market by volume, and hopes to further increase its holding, the latter said. 

Asia has become the main battleground for the top four global brewers - Carlsberg, AB InBev, SABMiller and Heineken - which need the growing middle classes in emerging markets to compensate for sluggish sales in Europe and the United States.

“It was essential for Carlsberg to get the majority stake. It makes it possible to implement its business strategies and increase profitability,” Sydbank analyst Morten Imsgard said.

Carlsberg, which inherited a stake in Chongqing Brewery through its takeover of British brewer Scottish & Newcastle in 2007, raised it in 2010 to become the biggest shareholder in the Chinese company with 29.7 percent.

On Thursday it completed its purchase of an additional 30.3 percent for 2.9 billion yuan ($476 million).

“With this purchase agreement Carlsberg is taking a step towards strengthening its strategic investment in Chongqing Brewery, based upon its positive outlook for the Chinese beer market,” Chongqing Brewery said in a statement sent to the Shanghai Stock Exchange.

“Carlsberg hopes to continue increasing its stake in Chongqing Brewery, and hopes this deal will deepen mutual cooperation between the two firms, lifting the value of Chongqing Brewery and the investment returns to the stockholders,” the statement added.

Carlsberg first launched its takeover offer in March, when chief executive Jorgen Buhl Rasmussen called the purchase “an important step forward in China”, and was given the green light for the deal at the end of October.

Carlsberg's main owner, the Carlsberg Foundation, said in October that it wanted to drop a rule in its charter that it must own at least 25 percent of the brewer.

That could open the door for a share issue and further acquisitions in Asia.

Sydbank's Imsgard said however it would be difficult for Carlsberg to grab other large acquisition targets in China ahead of other competitors which have more financial muscle.

Shares in Carlsberg traded 0.3 percent lower on Thursday at 12:33 SA time, while the Danish benchmark index was flat.© Independent On-line 2013. All rights reserved.  

Related News

Fabric softener brand ordered to change name after Sta-Soft complaint
12/09/2019 - 09:01
A local fabric softener brand has been ordered to change its labelling after the advertising regulatory board found that its use of the word "soft" was imitating rival brand Sta-Soft.

Eliminating packaging is a good start - but here's what supermarkets should do to stop harming the planet
26/08/2019 - 15:02
The first key step towards this vision is widening the packaging-free philosophy to all stores of all the major supermarkets, and, crucially, not giving consumers who might resist change the option to stick with the polluting packaged goods that feel so familiar.

Lidl introduces reusable fruit and veg bags
15/08/2019 - 11:29
The ‘Green Bags’, priced at 69p for two, provide customers with a reusable alternative to single-use, small fruit, and vegetable bags.

Back to selling more beers for AB InBev after failed Asian float
23/07/2019 - 11:40
AB InBev’s cancelled Asian stock market listing will slow but not derail the world’s largest brewer’s efforts to cut its debt mountain, delaying future acquisitions and prioritising its main challenge: selling more beers.

Nestlé Waters teams up with Ocean Legacy for plastic waste clean-up
11/07/2019 - 09:44
Nestlé’s bottled water division Nestlé Waters, owner of Perrier and Vittel, says it will team up with Canada’s Ocean Legacy Foundation to help to clean up plastic pollution.