SABMiller PLC (SAB.LN), the brewer, Thursday announced that China Resources Snow Breweries Limited, or CR Snow, its joint venture with China Resources Enterprise, has entered into an agreement with China Kweichow Moutai Distillery Co. Ltd to jointly invest in Guizhou Moutai Beer and form a joint venture called China Resources Snow Breweries (Junyi) Limited.
-As part of the transaction, CR Snow will inject approximately $42 million in return for a 70% equity stake in the joint venture.
-With an annual production capacity of 1 million hectolitres, Moutai Beer is a popular brand with a strong competitive position in Guizhou Province.
-CR Snow already has a leading position in Guizhou Province, with a market share of approximately 50% and sales volume of over 1.8 million hectoliters in 2010.
-Shares at 0835 GMT down 2.01% at GBP20.96 valuing the company at GBP33.36 billion.