E-Malt.com News article: 2622

Hong Kong: U.S. brewing giant Anheuser-Busch, challenging SABMiller for China's Harbin Brewery, is "the right strategic partner" for the beer maker, a mainland paper quoted a top government official as saying. A report in Chinese language Harbin Daily dated May 8 said Anheuser-Busch International President Stephen Burrows met Harbin city government officials last week.

"A-B is a big corporate with influence in the global beer market. It is the right strategic partner that we have long been seeking," the daily quoted Harbin city Mayor Shi Zhongxing as saying.

Anheuser has agreed with Harbin's management to buy a 29 % stake in the firm for HK$1.08 billion (US$138.5 million) or HK$3.70 per share and looks set to win support from local government for the country's fourth-largest beer maker. SABMiller, which already owns a 29.4 5 stake in Harbin, has launched a hostile US$553 million takeover offer following the news of Anheuser-Busch's investment, Reuters said on May 10.

Anheuser, maker of Budweiser beer, is still waiting for government approval for its plan to buy a stake in Harbin, which dominates China's northeastern market. "The possible cooperation with A-B would benefit the development of Harbin...it would help the (beer) market consolidation in the northeast and boost profit," Mayor Shi Zhongxing was also quoted as saying.

Harbin Brewery Chief Executive Peter Lo said in an interview last week that it regarded Anheuser-Busch as a preferable long-term partner. He said the firm had severed its strategic partnership with SABMiller after its 10-month relationship with the world's second-largest brewery failed.

Shares in Harbin Brewery ended Monday 2.76 % lower at HK$4.40. The stock soared over 40 % last week after the hostile takeover offer by SABMiller.


12 May, 2004