E-Malt.com News article: 2582

Hong Kong: Anheuser-Busch, a leading global brewer, announced on May 2, 2004 that it has agreed to acquire approximately 29 % of Harbin Brewery Group Limited, a leading brewer in China, through a purchase of Global Conduit Holdings Limited, an investment holding company. The total consideration is HK$1.08 billion (US$139 million), or the equivalent of HK$3.70 per share. As one of the oldest brewers in China, Harbin has a leading position in Northeast China and produces the Hapi beer brand.

“Harbin fits our strategy of investing in leading companies in growth markets like China with good volume and profit growth potential,” said Patrick Stokes, president and chief executive officer of Anheuser-Busch Cos., Inc. “We look forward to working closely with Harbin management and believe this cooperation will allow us to better participate in the long-term growth of the industry in China.”

This is Anheuser-Busch’s second investment in a leading brewer in China. Since 1993, Anheuser-Busch has been a minority investor in Tsingtao Brewery Co., Ltd. In 2002, the two companies announced a strategic alliance and initiated a best practices exchange program and other management initiatives. Anheuser-Busch currently owns 9.9 percent of Tsingtao, and has an agreement to increase the ownership to 27 percent over the next several years.

“This investment complements our successful Budweiser operations in China and our strategic partnership with Tsingtao,” said Stephen J. Burrows, chief executive officer and president, Anheuser-Busch International, Inc. “Tsingtao is supportive of Anheuser-Busch’s investment in Harbin and agrees it will be beneficial for all parties. We look forward to further contributing to the growth and development of the China brewing industry.”

Based in St. Louis, Anheuser-Busch is the leading U.S. brewer. In addition to Tsingtao, Anheuser-Busch equity investments include a 50 % share in Grupo Modelo, Mexico’s leading brewer. In a survey of 10,000 business leaders and securities analysts, Anheuser-Busch ranked first among beverage companies in quality of products and services researched in FORTUNE magazine’s 2004 “Global Most Admired Companies” listing.


04 May, 2004