Tsingtao Brewery took a big step towards consolidating its position as one of China’s largest beer producers on Tuesday, acquiring Shangdong Xin Immense Brewery Company in a Rmb1.9bn (£178.3m) deal.
Shandong Xin is the second largest beer producer in the Shandong province after Tsingtao itself. The brewer owns the Silver Wheat beer brand sold in mainland China and is estimated to have a production capacity of 550,000 litres per year.
The acquisition - from the Hong Kong-based Xin Immense Brewery (which owns 71 per cent) and investor China Skill (who have 29 per cent) - is the company’s third takeover in two years. In September Tsingtao moved into Shanxi province with the acquisition of the 400,000 litre annual capacity Taiyuan Jiahe Brewery. A month earlier it took a 45 per cent stake in Hangzhou Xihu Beer Asahi for an estimated CNY 2bn ($294m).