InBev pays $5.8b for Fujian brewer
Belgium's InBev, the world's biggest brewery by volume, is spending Euro614 million ($5.84 billion) to acquire Fujian Sedrin Brewery, the largest brewer in Fujian province.
The Belgian firm yesterday said it planned to buy an initial 39.48 per cent stake from Fujian Sedrin's state shareholders. It would acquire the remaining 60.52 per cent from other shareholders in one or more stages before the end of next year.
InBev chief executive Carlos Brito said the transaction - one of the largest foreign purchases of a Chinese company - was a significant step as InBev wanted to strengthen its presence in southeast China.
The Sedrin brand will be one of InBev's five top-selling brands globally by volume.
InBev outbid Dutch brewer Heineken and Anheuser-Busch of the United States to win the right to gain full control of Fujian Sedrin, a state-owned brewery based in one of China's wealthiest coastal provinces, according to sources.
InBev has become China's largest brewer with 30 plants in eight major provinces with an aggregate 35 million hectolitres in sales and a leading market share in each of the provinces where it competes.
Fujian Sedrin is also one of the most profitable brewers in the mainland, with earnings before interest, tax, depreciation and amortisation margins in excess of 30 per cent.
InBev expects its return on invested capital and weighted average cost of capital to break even in four years.
