Tsingtao enters traditional Chinese wine as beer market tanks

HONG KONG -- Tsingtao Brewery, one of China's oldest beer companies, is buying its way into the traditional yellow wine business, as it seeks a more diverse product lineup in a consumption downturn.

Tsingtao announced on Wednesday evening that it has agreed to acquire Shandong Jimo Yellow Wine Factory from Hiking Group, which directly owns 45.45%, while subsidiary Shandong Lujin Import and Export Group holds the remainder. The price tag is estimated at 665 million yuan ($92 million), with a final adjustment to be made based on the unit's profit or loss during the period until the deal is settled within 120 days.