13 July 2011
CR Snow is acquiring a 49% equity stake in Jiangsu Dafuhao Breweries and a 100% equity stake in Shanghai Asia Pacific Brewery from Heineken-APB for a total cash consideration of approximately RMB870 million.
With its major beer brand "BBOSS", Jiangsu Dafuhao Breweries has a strong market position in the central part of Jiangsu Province.
Shanghai Asia Pacific Brewery produces one of the most famous beer brands in Shanghai, " REEB", which is its major beer brand.
CR Snow is a market leader in Jiangsu Province with sales volume of 660,000 kiloliters in 2010. Its major market is mainly located in the southern part of the province. Through its acquisition of a 49% equity stake in Jiangsu Dafuhao Breweries, CR Snow will be able to develop with Jiangsu Dafuhao Breweries a business platform that brings together the strengths of both companies so as to create greater returns for shareholders.
Benefiting from Shanghai Asia Pacific Brewery's extensive distribution network, the acquisition will further strengthen CR Snow's competitive advantage in Shanghai.
Both acquisitions will further reinforce CR Snow's leading position in China's