China: Carlsberg increases its presence with Wusu acquisition
Carlsberg has announced the acquisition of 100% of the ownership in Wusu Beer Group (WBG), as it continues to further its presence in China.
WBG is a 50/50 joint venture between the Carlsberg Group and Xinjiang Hops, with Carlsberg also owning a 30% stake in Xinjiang Hops. Carlsberg said the acquisition would be done through an asset swap, where Carlsberg will acquire Xinjiang Hops’ 50% stake in WBG and dispose of the 30% stake in Xinjiang Hops. The transactions are inter-conditional, and Carlsberg will receive a net cash proceed of approximately DKK 200m ($30 million) upon completion, the company said.
The acquisiton of WBG is a further demonstration of Carlsberg’s interest in the Chinese beer market. The Danish brewer also acquired 100% of Chongqing Beer in January 2014.
The transaction is subject to regulatory approval and is expected to close by the end of 2015.