Analysts say Tsingtao deal good for Anheuser.
China's beer market, while still very regional in nature, has been growing at 6% a year. Tsingtao has been one of the fastest-growing Chinese breweries. The company has been on serious acquisition binge since 1997, buying 40 breweries.
Tsingtao needs the funds from A-B to modernize existing breweries and continue acquisitions. Analysts think Tsingtao may have bought too many breweries too fast, but Anheuser-Busch dollars and expertise will help Tsingtao consolidate its expansion.
Over the long term, analysts said the deal will provide enormous dividends for Anheuser. The St. Louis brewer will immediately gain higher exposure within the Chinese market, and will be able to make use of Tsingtao's extensive sales and distribution network.
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|Title Annotation:||Anheuser-Busch raises shares in Chinese brewery|
|Publication:||Modern Brewery Age|
|Date:||Oct 28, 2002|
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