Sao Paulo, Brazil, 14 Dec – Belgian-Brazilian drinks group InBev is set to acquire Chinese state beer company Fujian Sedrin Brewery for around US$750 million, the Brazilian press reported in Tuesday.
According to the reports the purchase of Fujian Sedrin Brewery, one of the Chinese beer market, would be one of the largest carried out by a foreign company in China.
The purchase would increase InBev’s presence in the Chinese market where it has already invested US$400 million in buying smaller companies.
InBev was created last year through the merger of Belgium’s Interbrew and Brazil’s AmBev, the largest drinks company in Latin America and the seventh largest in the world.
The Chinese authorities will have to approve InBev’s acquisition of China’s eighth largest brewery, according to the reports.
If the purchase is approved, InBev will acquire a greater presence in the Chinese market, particularly in the coastal provinces of southern China, where there area round 350 million inhabitants.
Currently, per capita beer consumption in China stands at around 18 liters per year while in the united States the figure stands at 84 liters per capita and in Europe the figure is 75 liters per capita.
Foreign investors believe, however, that beer consumption in China will rise in future, in line with the growth of the country’s economy.
Brazil’s Ambev is the largest drinks maker in Brazil, with brands such as Skol and Brahma beer, as well as Antártica soda.(macauhub)