Is Anheuser-Busch Ready to Swallow China’s Ginsber for $630M?
Recent rumors have elucidated that the world’s biggest brewer, Anheuser-Busch InBev (NYSE:BUD) has its eye on China, and it is ready to make moves. China is a country that has especially attracted the attention of many American companies lately, as it now is not only the world’s most populous nation. It also hosts a rapidly growing middle class, and retailers along with food and beverage companies alike have all shown an interest in cracking the country to reap its benefits.
Want China Times reported Tuesday that Anheuser-Busch is making its big China move by working to acquire Siping Ginsber Draft Beer, one of China’s single largest beer factories, for 3.8 billion yuan, or $630 million. Insider sources say that the deal has been in negotiation stages since last September, and although details still need to be ironed out, it looks like both parties are coming closer to an agreement. The deal is expected to benefit both parties because Ginsber will profit from its high price tag, while Anheuser-Busch will be able to take over Ginsber’s market share in China.
According to Want China Times, as of 2011, Anheuser-Busch’s beer production reached 5.66 million tons in China, ranking third, while Ginsber ranked eighth. Ginsber’s single factory production has a capacity that exceeds 600,000 tons.