Carlsberg (CARL.OMX) will pay US$342 million for a 12.25% stake in Chongqing Brewery (600132.SH), a move that the Danish brewer described as integral to its long-term growth strategy for Asia, the Wall Street Journal reported. The deal, which is subject to approval from relevant authorities and minority owners, will take Carlsberg’s total holding in Chongqing to 29.71%. The company acquired its original stake through the 2008 acquisition of some of Scottish & Newcastle’s assets. Carlsberg spokesman Jens Bekke said that beer consumption in central China is relatively low, but is expected to take off in coming years. Chongqing Brewery produced 10 million hectoliters of beverages in 2009 and has a market share of about 80% in its surrounding regions, which are home to 30 million people. The brewery currently makes several local beers but Carlsberg eventually expects to sell international brands through the company.
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