Swire to acquire Carlsberg stake

SWIRE Pacific has signed an agreement with Carlsberg and the East Asiatic Co (EAC), both based in Denmark, to acquire a 39.2 per cent equity stake in Carlsberg Brewery Hong Kong (CBHK) for $523 million.

Under the new arrangement, Carlsberg - which previously held a 50 per cent stake in CBHK - will retain a 40.8 per cent shareholding while EAC will retain the remaining 20 per cent.

Jim Conybeare, executive director of Swire Pacific industries division, said: 'We are pleased to have this opportunity to co-operate with Carlsberg, which has always been known to pursue its long-term profit growth through quality and technical and marketing excellence.' The partnership is expected to pave the way for CBHK to enter the China market, with plans to expand and develop the Carlsberg business through the acquisition of further breweries.

Carlsberg has also signed a memorandum of understanding for the acquisition of a 99 per cent interest in the brewing and can manufacturing operations of the Huizhou Brewing Co in Guangdong province for a consideration of US$33.3 million.

Swire Pacific's industries division has become the third Swire Pacific division along with the property and aviation divisions to register growth.

Mr Conybeare said the beverages operations showed the greatest expansion potential and the addition of CBHK to its existing Coca-Cola operations positioned the company as a major force in China's beverage market.