Carlsberg buys out popular Hue brewer
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>> Carlsberg buys rest of Vietnamese brewery
The deal is valued a total of VND1.8 trillion ($93 million) for its two breweries and the Huda Hue brand name.
The provincial government decided to sell its stake because it did not have the money to invest in boosting production and increasing the company's market share.
Hue Brewery was established in 1990 and became a joint venture with Carlsberg Group four years later with the two sides' stakes valued at $9 million each.
The company, with an annual output of 200 million litres, has an 8 per cent market share of the Vietnam beer market, and is one of the top four brewers in the country along with Sabeco, Habeco and Vietnam Beer.
It hopes to expand its market share to 15 per cent by 2015 and the deal, its general director Nguyen Mau Chi explained, is to help the company fulfil its strategy since the provincial government could not find the required financial resources.
An additional investment of VND2.5 trillion ($119 million) would be needed, he said.
The chairman of the Thua Thien-Hue People's Committee, Nguyen Van Cao, said Carlsberg has committed to increase the company's capacity to 350 million litres a year by 2015.
Hue Brewery has been the biggest source of revenue for the provincial government budget, providing a third or even half of total collections.
Last year it contributed VND850 billion ($40.5 million) and that is expected to rise to VND900 billion this year.
The sales notwithstanding, Cao said the deal will help strengthen the Huda Hue brand.
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