Beer firm Tsingtao has announced that it will acquire its remaining stake in its Suntory joint venture, according to a report in the Want China Times.
In a statement to the Hong Kong Stock Exchange, the company said that it woul buy a 50% stake in both the beer manufacturing and sales companies in its joint venture with the Japanese beverage conglomerate for 822.9 million CNY ($129.5 million) in the first half of 2016.
The stake purchase deal includes Suntory Tsingtao Brewery (Shanghai) Co and Tsingtao Brewery Suntory (Shanghai) Sales Co, from Suntory. The move will integrate Tsingtao’s operations, creating synergies while improving overall efficiency, the company added.
Suntory first brought its beer to the Chinese market in 1981. It partnered with Tsingtao in 2012 and entered a contract in 2013 to jointly establish beer manufacturing and sales companies in Shanghai and Jiangsu with the Shandong-based beer company, according to sources.
Tsingtao will enter into a separate agreement for the rights to use Suntory’s trademarks for a license term agreed by both parties, according to the company.
Source: Want China Times / The Drinks Business