Belgium & China: InBev closes acquisition of Fujian Sedrin Brewery in China

InBev announced June 28 the completion of its acquisition of Fujian Sedrin Brewery Co. Ltd. ("Fujian Sedrin") in China, ahead of the originally anticipated completion date of end 2006. With all the necessary regulatory approvals obtained, InBev Sedrin, a wholly foreign owned enterprise (WFOE), has now been duly established. InBev paid RMB 5.886 million (equivalent to euro 614 million, based on hedged exchange rate of approximately RMB/euro 9.57) for a 100% stake in Fujian Sedrin. The acquisition further consolidates InBev's leadership position in southeast China.

The accelerated closing of this transaction allows the InBev group to realize the benefits from synergies earlier than originally anticipated.

Combined with InBev's existing operations in China, this transaction positions InBev as one of the largest brewers in China with 36 million hl volumes sold in 2005 and a leading presence in the affluent southeastern part of China.

InBev China has operations in 8 provinces: Guangdong, Hebei, Hubei, Hunan, Jiangsu, Zhejiang, Fujian and Jiangxi. With this acquisition, the Sedrin® brand becomes InBev's fifth largest brand globally by volume.

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