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Asahi to divest stake in Chinese soft drink producer Tingyi

Published 03 July 2017

Japanese food and beverage firm Asahi is selling its remaining 20.4% stake in Tingyi-Asahi Beverages to its Chinese joint venture partner Tingyi for $612m.

The sale is part of the company’s strategy which focuses on having alcohol as its core business, with a reach in food and beverage industries.

Financial proceeds from this transaction will be invested in its European operations, where it has acquired the western and eastern European operations of Anheuser-Busch InBev.

The Japanese company formed a joint venture with Tingyi and others in 2004, in order to penetrate the Chinese market.

Eventually, the company has grown to become one of the largest soft-drink producer in the country and has had sales of $4.46bn of tea, water and other products.

Asahi plans to establish itself as a domestic industry leader focused on high value addition, while establishing a unique position as a global player that leverages strengths originating in Japan.

As part of its international business segment, under the medium-term management policy, The company sees brand reinforcement and development in existing businesses and acquiring new companies for growth. Last year, the company agreed to acquire Central and Eastern European business and related assets of SABMiller.

Asahi has also sought to continuously enhance its corporate value by expanding its business portfolio restructuring with major focus on increasing the efficiency of its assets. To this end, Ashai has re-examined its investment in equity-method affiliate TAB and decided to sell its entire equity stake.

Image: Asahi Breweries headquarters building. Photo: Courtesy of Philippe Starck/Wikipedia.org.