The world’s biggest brewer AB InBev plans to buy South-Korean beermaker Oriental Brewery for $5.8 billion, AB InBev said in its official press release January 20.
Investment funds KKR and Affinity are the sellers of Oriental Brewery. In 2009, they acquired the brewer for $1.8 billion under the condition that AB InBev would be able to regain control of the company. Carlos Brito, Chief Executive Officer of AB InBev, noted that Oriental Brewery will strengthen their position in the fast-growing Asia Pacific region. The transaction is to be completed in early 2014 provided that South-Korean regulators approve it.
According to Reuters, AB InBev has relatively small presence in Asia Pacific, with the region accounting for 14.3 percent of the 403 million hectoliters of beer sold in 2012.
Today, Oriental Brewery is a leading beermaker in South Korea. Together with its counterpart Hite Jinro, it controls 90 percent of South Korea's beer market. AB InBev sells brands including Stella Artois and Bud Light.
Asian brewers attract attention of the major food companies who expect steady growth in sales of alcoholic beverages in the region. Thus, In 2012 Heineken paid $6.4 billion for Singapore’s Asia Pacific Breweries.
