Asahi sells stake in China’s Tsingtao Brewery

Asahi Group Holdings has announced it will sell its stake in Tsingtao Brewery Company Limited to Fosun Group and Tsingtao Brewery Group Company Limited in two separate transactions.

The Japanese brewer will sell its 19.9% stake for 106bn yen ($937m). The majority of the stake will go to China’s Fosun for $847m, with the remaining shares to go to Tsingtao for $94m. 

Tsingtao Brewery Group Company Limited already has a 31% stake in Tsingtao Brewery.

The deal follows Asahi’s sale of a 20% stake in China’s Tingyi-Asahi Beverages Holding in June.

Asahi has been increasing its focus on the European market: buying SABMiller’s operations in Central and Eastern Europe (including Pilsner Urquell), as well as the Peroni and Grolsch beer brands, following SABMiller’s combination with AB InBev last year. 

Fosun, a company ‘dedicated to creating customer-to-maker ecosystems in health, happiness and wealth that support the lifestyle and consumption upgrade of China’s modern consumer’, says it is optimistic about the potential growth of Tsingtao due to its ‘unique brand value and excellent management team, conforming to the trend of consumption upgrading of Chinese brewery industry’.