IT’S OFFICIAL

InBev finally announced their takeover of Chinese brewer Fujian Sedrin after months of speculation. For $730 million, the global brewer beat Heineken and Anheuser-Busch to the punch. They will immediately acquire a 39.48% stake in the Chinese brewery while the remaining 60.52% will be taken up by various shareholders through 2007.

Why Fujian Sedrin, you might ask. Well, it's the leading brewer in Fujian Province with a market share of 45%, and the growing Chinese market is becoming more and more attractive to global brewers like InBev. “This transaction is a very significant step in our strategy and strongly reinforces both our leadership position and footprint in southeast China,” said Carlos Brito, InBev CEO. “Fujian Sedrin is one of the most profitable Chinese brewers and in recent years has achieved an EBITDA margin in excess of 30%. The Sedrin brand will be one of InBev’s top five selling brands globally by volume with significant potential for growth and expansion.”