Heineken today confirmed to have signed a binding agreement with China Resources Enterprise (CRE) and China Resources Beer (Holdings) to become CRE's 40% minority partner in holding company CRH (Beer), which controls CR Beer, the undisputed market leader in the world's largest beer market, China. The terms of the signed definitive agreements are in line with the non-binding agreements previously announced on 3 August 2018. (inside.beer, 3.8.2018)
If regulatory approval is successfully obtained, the transaction is expected to complete in 2019.
Commenting on the strategic partnership, Heineken Chairman of the Executive Board & CEO Jean-François van Boxmeer said: "I am pleased we have quickly come to definitive agreements with CRE and CR Beer to join forces in China. Our long-term strategic partnership will help Heineken to significantly expand the availability of the Heineken® brand, and will strengthen CR Beer's offering in the rapidly growing premium beer segment in China. We look forward to growing together by leveraging Heineken's global reach and marketing capabilities to help accelerate the international development of CR Beer's Chinese beer brands worldwide."
Chen Lang, Chairman of CRE, said: "We are looking forward to join forces with Heineken in China. We believe that our strategic alliance will maximize synergies, enhance the long-term competitiveness of both companies and further increase our market share in China's premium beer market. It will bring together the competitive advantages of Heineken's international premium brands with CR Beer's leading position and rich experience in the Chinese beer market. In Heineken we found the perfect partner to achieve our ambitions in China and to support our international business growth. We now look forward to closing the transaction."
