Heineken and CR Beer Holdings finalise transaction

Heineken and China Resources Beer Holdings (CR Beer) and China Resources Enterprise (CRE) have entered into a long-term partnership to expand their combined market share in the country's rapidly growing premium beer segment. The transaction was announced in August 2018 and was confirmed on 5 November 2018.

Terms of the complex tie-up - resulting in a net investment of EUR 1.95 billion (USD 2.2 billion) by the Dutch brewer - are in place and only need regulatory approval.

Once completed, Heineken will have an effective 20.7 percent economic interest in CR Beer, while CRE is acquiring EUR 464 million (USD 525 million) worth of shares in Heineken, which in turn is contributing its mainland operating entities to CR Beer.

Heineken expects that its net debt will slightly exceed the target of 2.5 times EBITDA on completion.