Heineken shares rise as it signs agreement with China Resources
Heineken shares are higher Monday, as the Dutch-based brewer has signed a clear agreement with China Resources, to create a strategic partnership in which Heineken beers will be licensed to CR, on a long-term basis.
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According to previous reports earlier this year, the deal will see Heineken take a 40% stake in CR for $3.1 billion.
By 1325 BST, Heineken shares were 0.35% higher at €79.68. The stock has been trending broadly higher, in recent weeks.
Heineken, CR strategic partnership
Heineken announced Monday, that it has signed a definitive agreement with China Resources to license its products to CR, on a long-term basis, with the Dutch brewer taking a 40% stake in the Chinese firm.
The deal will also open up further opportunities to license and distribute other Heineken brands across Mainland China, Hong Kong and Macau.
“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,” said Heineken chairman and CEO, Jean-Francois van Boxmeer.
“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,” van Boxmeer added.
Partnership to benefit CR beers, too
As Heineken’s CEO sates, the deal is set to benefit CR, too, as the two businesses will work together to uncover opportunities to grow CR’s Beer Snow brand, among others, on a global basis.
“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,” said China Resources chairman, Chen Lang.
“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,” Lang added.
The deal is expected to complete in 2019.