China Resources Enterprise has bought a beer brewery in Henan in its latest move to grab a larger slice of the competitive drinks market.
The red-chip company, which runs supermarket chains CR Vanguard and Suguo and brews Snow beer, said yesterday it had taken over Henan Shangqiu Lanpai Beer, one of the largest breweries in the province, for an undisclosed price.
This is the group's third acquisition in Henan in 15 months.
China Resources Snow Breweries (China) general manager Wang Qun said the deal would immediately bolster its exposure in the mainland's central region.
China Resources Enterprise chief financial officer Frank Lai Ni-hium said two months ago that mergers and acquisitions - using net cash of about HK$3 billion - would be key to the company's development strategy in the rest of this year.
The group would also start building new brewery facilities at Shangqiu, a railway and road transport hub, Wang said.
Henan Shangqiu Lanpai Beer is one of the largest breweries in Henan, with an existing capacity of 150,000 kilolitres, and commands 60 per cent of the beer market in Shangqiu and outlying cities.