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A-B's Harbin Brewery suing SABMiller for $7 million.

China's Harbin Brewery Group is seeking $7 million from SABMiller after its buyout deal fell through earlier this year and Anheuser-Busch Cos. Inc. took control of the Chinese brewer, according to published reports.

South African newspaper Business Day reported that Harbin was suing SABMiller over guarantees involving a company formed by Harbin and SABMiller last year, as well as a $7 million loan that SABMiller made to six Harbin directors, which was later in default.

Earlier this year, SABMiller and Anheuser-Busch battled over ownership of Harbin, which eventually chose to sell to A-B. Harbin alleges SABMiller did not fulfill its obligations.

On June 1, Anheuser-Busch offered about $720 million for the outstanding shares of Harbin. The company also boosted its stake in Harbin, paying $49.8 million May 31 for an additional 7 percent stake. As of Aug. 18, A-B held 99.91 percent of Harbin's shares, and will buy the rest to take the brewer private.

St. Louis-based Anheuser-Busch Cos. Inc. (NYSE: BUD), the world's largest brewer, manufactures and recycles aluminum cans and operates theme parks. It is the area's 19th largest employer. It also owns a stake in Tsingtao, China's largest brewer; a 29 percent stake in Harbin Brewery Group; and owns 98 percent of the Budweiser Wuhan International Brewing Co., in Wuhan, China, where Budweiser is brewed.


21 August, 2004