China: Anheuser-Busch could be looking to make another acquisition in China, according to various international sources. The company is said to have done due diligence on Australian brewer Lion Nathan's beer operations in China. Other international brewers that have reportedly done due diligence on the operations are Heineken, Interbrew and SABMiller, which has reached the second round of bidding, the reports said. London-based SABMiller has made an estimated US$153 million bid for the money-losing operations, valued by analysts at US$70 million.

Lion Nathan's brands in China include Taihushui, Rheineck, Carbine, Steinlager and Beck's. It operates three breweries in the Yangtze River delta region.

The Chinese beer market is estimated to be worth about US$7 billion a year. Anheuser-Busch has already spent millions this year boosting its presence in China. In May, Anheuser-Busch bought Harbin Brewery Group Ltd., beating out a previous bid by SABMiller. In 2002, A-B said it would spend $182 million over seven years to boost its stake in Tsingtao, another Chinese brewer, to 27 %.

St. Louis-based Anheuser-Busch Cos. Inc. is the world's largest brewer, manufactures and recycles aluminum cans and operates theme parks. It also owns 98 percent of the Budweiser Wuhan International Brewing Co., in Wuhan, China, where Budweiser is brewed.

15 September, 2004