Beijing Yanjian Brewery In Talks To Buy Kingway For $700 Million

By Roland Li | May 04 2012 2:05 PM

Chinese beer maker Beijing Yanjian Brewery Co. (Shenzhen: 729) is in exclusive talks to buy Hong Kong-based Kingway Brewery Holdings Ltd. (Hong Kong: 124) for $700 million, Dow Jones reported Friday.

Flickr/ Tim Pearce, Los Gatos

The researcher analyzed the chemical components of the beers and found that the content of iron, potassium, phosphates and polyphenols betray their nationality. While the differences in these contents can be subtle, the model the researchers built is capable of detecting them.

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The deal would further consolidate China's beer industry, following Tsingtao Brewery's acquisition of Shandon Xin Immense Brewery in December 2010 for 1.87 billion yuan ($297 million). The deal would allow the companies to expand distribution together, but state control of the beer industry has limited consolidation, said Dow Jones.

China Resources Snow Breweries Ltd. and Belgium-based Anheuser Busch InBev NV were also bidders for Kingway, which is a subsidiary of government-owned Guangdong Holdings Group.

The Netherlands-based Heineken bought a 21 percent stake in Kingway in 2004 through a subsidiary.

Shares of Kingway were down 1.89 percent to 2.60 Hong Kong dollars at Friday's close. Shares of Yanjiang were up 0.89 percent to 15.85 yuan.