China’s largest beermaker Tsingtao Brewery, has backed Anheuser-Busch’s move to acquire a 29% stake in Harbin Brewery, even though Anheuser already has a partnership with Tsingtao.

Tsingtao, in which Anheuser owns a 9% stake, said it believed the Harbin acquisition was of benefit to all parties concerned. Tsingtao’s management had been notified of the move before the purchase it said.

“Tsingtao supports Anheuser-Busch's action and believes that this transaction is beneficial to all parties,” the company said in a statement.

The move by Anheuser prompted international rival SABMiller to launch a full takeover bid for Harbin. SABMiller already holds a 29% stake in the Hong Kong-based business.

However, it became apparent yesterday that SABMiller’s bid would be a hostile one, with Harbin’s CEO Peter Lo saying: "Since we signed the strategic investor agreement with SABMiller last June, SABMiller has done nothing good for us."

SABMiller and Harbin signed an accord when SABMiller bought 29.41% in the Chinese brewer. But Harbin terminated the partnership on Saturday.

Harbin’s board said they considered SABMiller’s bid, which was made yesterday, hostile. It has prompted speculation that Anheuser may launch a bid of its own.

07 May, 2004