Carlsberg reaches impasse with Chongqing Brewery Company

Source: Global Times

The World's fourth-largest brewer, Danish brewer Carlsberg, met another impasse in its purchase process of China's Chongqing Brewery Company (CBC) Tuesday. The firm exposed that, as the acquiring party, its Hong Kong branch was not qualified to acquire a firm since it reported consecutive losses for three years, according to media reports.

The occasion creates uncertainties over the deal, which is still waiting for the government's approval.

According to relevant rules in China, the acquiring party needs to have made profits for two consecutive years.

CBC announced on June 10 that Carlsberg would increase its stake in CBC to 29.71 percent from the current 17.46 percent for about 2.1 billion crowns ($378.7 million). But on June 17, more than 500 employees of CBC held a strike opposing the firm's (CBC) decision.