Carlsberg Expands Beer Business in China
The Carlsberg Group is taking full ownership of Wusu Beer Group (WBG), the beer market leader in Xinjiang in China, in a deal which will net DKr200 million (Eur26.8 million) for the Danish brewer. WBG owns six breweries in Xinjiang with a combined annual production capacity of approximately 6m hl.
WBG is a 50/50 joint venture between the Carlsberg Group and Xinjiang Hops. In addition to direct ownership in WBG, Carlsberg owns 30% in Xinjiang Hops. The acquisition is being 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 DKr200 million upon completion. The transaction is conditional upon certain approvals and expected to be finalised at the end of 2015.
