Heineken fails to up stake in Kingway

- Last updated on GMT

Related tags: China, Netherlands, Europe

Heineken has ended talks to increase its stake in the Chinese
brewer Kingway, according to a report, after a lack of progress in
discussions with its controlling shareholder GDH.

Ye Xuquan, chairman of Guangdong-based Kingway, told the Financial Times​ that talks between GDH and Heineken's 46 per cent-owned China venture, Heineken-APB, had not progressed since a previous announcement on July 21.

"It is not in [Kingway]'s interest for uncertainty to continue over whether there will be any takeover offer for the company,"​ he told the paper.

He added that all three parties would "focus their efforts on continuing to further cooperation at an operational level".

But Heineken, the world's fourth largest brewer said that while discussions had been terminated, it was still interested in the brewer.

The Dutch company has a 21.4 per cent stake in Kingway. GDH owns 52.63 per cent.

European brewers are keen to expand in China, now the world's second biggest market for beer and seeing much faster growth than in Europe.

Related topics: Heineken

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