China brewer said to mull bid for 6 billion dollars of SABMiller assets | Progresiv
China Resources Beer Holdings Co is considering a bid for SABMiller Plc’s central and eastern European assets, valued at about 6 billion dollars, according to people familiar with the matter. 
The producer of China’s Snow beer brand is speaking with potential advisers about a bid, the people said, asking not to be named as the details aren’t public. A sale process for the assets, which include the brewer of Czech lager Pilsner Urquell, is expected to start next month after SABMiller’s deal with Anheuser-Busch InBev NV closes, they said.
China Resources could go up against Japanese brewer Asahi Group Holdings Ltd. and financial bidders, including Swiss investment group Jacobs Holding AG, Poland’s Kulczyk Investments SA and CVC Capital Partners, three of the people said. KKR & Co., Advent International Corp. and Mid Europa Partners may also bid, they said.
AB InBev agreed to divest operations in Hungary, Romania, the Czech Republic, Slovakia and Poland to help secure regulatory approval for its about $100 billion takeover of rival SABMiller. The company may prefer to sell to another brewer to help ensure a level playing field among competitors in these markets, the people said.
Representatives for AB InBev, Asahi, China Resources, CVC, Advent and Kulczyk declined to comment. Representatives for Mid Europa Partners, KKR and Jacobs Holding didn’t immediately respond to requests for comment.
AB InBev already agreed to sell the Peroni, Grolsch and Meantime brands to Asahi for 2.55 billion euros. Divesting additional assets in central and eastern Europe will help AB InBev cut back in a difficult market. SABMiller’s Polish business, the largest brewer in the country, has been weighed down by discounting and competition that’s contributed to declining lager sales in Europe overall.
In March, China Resources agreed to buy out SABMiller’s remaining stake in the Snow beer venture for 1.6 billion dollars in a deal that helped AB InBev secure Chinese antitrust approval.
SABMiller’s board unanimously recommended AB InBev’s takeover offer, which will combine the world’s two largest brewers, in July. Shareholders will vote on the deal on Sept. 28, and the transaction is expected to close on Oct. 10. (www.esmmagazine.com)
