Tsingtao Brewery who are attempting to acquire the Henan Waysnow Beer Group, may yet be foiled by Tsingtao’s own former business partners.
Reports are suggesting that Waysnow has already signed a preliminary agreement with Belgium’s global brewer Anheuser-Busch InBev (AB Inbev) to sell two production bases in Xinyang and Gongyi, both in Henan province, for over 500 million yuan.
In addition the agreement includes that two of Waysnows brands “Waysnow” and Jigongshan will also be sold to AB InBev.
Tsingtao Brewery currently has no production facilities in Henan province. Waysnow is the second largest brewer in Henan. It owns four beer production bases in Zhengzhou, Xinyang, Gushi and the forth one in Hebei province. as well as a malt manufacturing company.
If Tsingtao are going to complete this deal it looks likely that they will have to increase their offer.
According to statistics from ocn.com.cn, there are currently eight small and medium-sized brewers that could be available for acquisition.