USA, New York: Anheuser-Busch Cos. Inc. closed its acquisition of a majority stake in China's Harbin Brewery Group on June 18 and launched a tender offer for the shares it does not own, the top U.S. brewer's investment bank said. The company, makers of brands such as Budweiser and Michelob Ultra, offered HK$5.58 for each outstanding share of Harbin, Morgan Stanley Dean Witter Asia Limited said in a filing with the Hong Kong exchange, Reuters revealed. That price matches what Anheuser-Busch paid for rival SABMiller Plc's 29.4-% stake in the Chinese brewer.

Anheuser-Busch's offer, which it announced earlier this month, trumped an HK$4.30 per share bid from SABMiller. SABMiller, which bought its Harbin stake in 2003, sold the shares to Anheuser-Busch on Friday, giving the company control of 65.4 percent of Harbin stock.

Brewers, many of which suffered loss-making forays into China in the past, hope that ongoing consolidation in the country's beer sector, as well as rising incomes, will lead to higher prices and profits.

Anheuser-Busch already owns 9.9 % of Tsingtao, China's largest beer maker, and plans to raise that stake to 27 percent over the next 7 years.

Shares of Anheuser-Busch were up 14 cents, at $53.97, in early afternoon trading on the New York Stock Exchange. Harbin's shares closed at HK$5.55 on Friday. ($1.00 = HK$7.79866)

23 June, 2004