China's top brewer buys the dip on premium liquor

China Resources Beer Holdings

27/10/2022 03:00

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Pete Sweeney
       HONG KONG, Oct 27 (Reuters Breakingviews) - State-backed
China Resources Beer is bagging a bargain, paying $1.7 bln for
control of the country's fifth-largest baijiu maker - one of the
largest such transactions on record. Given soft demand and tax
hike risks, more deals may follow. Local politics will
complicate them. 
    Full view will be published shortly.
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    CONTEXT NEWS
    China Resources Beer Holdings said on Oct. 25 that its
subsidiary China Resources Wine Holdings has agreed to acquire a
55.19% stake in Guizhou Jinsha Jiaojiu Winery Industry for about
$1.7 billion.
    The acquisition is pending government regulatory approval,
CR Beer said.
    CR Beer’s Hong Kong-listed shares closed down 6% to HK$41.5
on Oct. 26.
 (Editing by Robyn Mak and Thomas Shum)
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