ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Business

Swire to buy Citic stakes in 3 beverage units

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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media