Beverages News
- Carlsberg eyes Yanjing
Date: 28-Nov-2006 Sources: (Xinhua Online)
Carlsberg A/S, the Danish brewer planning to invest as much as 880 million U.S. dollars in Asia in the next three years, is seeking acquisitions in China's eastern regions to help it expand 15 percent annually in the biggest beer market, a senior official of the firm said yesterday.
Carlsberg 'will not rule out' buying companies 'with strong positions' in east China, Senior Vice President Jesper Madsen said in an interview in Beijing. Beijing Yanjing Brewery Co 'is an interesting asset,' he said, declining to comment on whether the companies have entered talks, according to Bloomberg News.
Acquisitions would help Carlsberg narrow the gap with Anheuser-Busch Cos and SABMiller Plc after losing market share to its rivals in China's richest provinces. Global brewers are buying stakes in around 500 beer makers in the nation to bolster sales as demand slows in the United States and Europe.
'If a brewer doesn't have much market share in eastern regions now, it would be very hard to enter this highly competitive but attractive market,' said Yang Lei, a Shanghai-based analyst at ABN Amro Holding NV. 'It's not a surprise that Carlsberg would be interested in Yanjing Brewery, which controls 85 percent of the market in Beijing.'
Carlsberg is considering buying a stake in Yanjing Brewery, Danish newspaper Boersen reported on September 26. Rivals Heineken NV and InBev NV are also reportedly in talks with China's third-biggest beer maker, which is the country's only major brewer without an overseas partner.
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