HONG KONG -- Swire Pacific has agreed to acquire minority interests in beverage joint ventures from Citic, China's largest state-run conglomerate, for a total of 1.25 billion yuan ($201 million), the conglomerate announced Tuesday.
Swire said subsidiary Swire Beverages Holdings will buy a 15% stake in Swire BCD, 20% in Swire Coca-Cola Beverages Hefei and 12.86% in Swire Coca-Cola Beverages Zhengzhou. Swire will then own 89.38% of Swire BCD, 91.5% of Swire Coca-Cola Beverages Hefei and 85.78% of Swire Coca-Cola Beverages Zhengzhou. The three companies make and sell nonalcoholic beverages in mainland China.
The deal is subject to regulatory approval.
Citic, which had originally paid $13.7 million for the three stakes, will not hold any interest in the companies after the transaction.
In a statement filed with the Hong Kong Stock Exchange, Swire called its shareholdings in the three companies "key, long-term strategic investments."
Meanwhile, Citic aims to streamline its expanded business portfolio, which includes financial services, property and infrastructure development as well as energy. "The sale is aligned with Citic's strategy to consolidate resources to develop and reinforce its leadership in its core business sectors," the company said in a press release.
Beverages make up one of Swire's key segments. Swire Beverages' business relationship with Coca-Cola began in 1965. It bottles around 60 brands and supplies them to territories that have a combined population of 450 million. Its sales territories include Hong Kong, Taiwan, seven provinces in mainland China and the western part of the U.S.
Swire Beverages in 2014 recorded revenue of 16.4 billion Hong Kong dollars ($2.1 billion), and its net profit reached HK$854 million in 2014.