Canadian brewer Molson made a significant leap forward in Brazil this week by acquiring the country's second-largest brewer, the Financial Times reports.
According to the report the deal, which is worth US$765m (€867m), also involves Heineken, the Dutch brewer, and the Coca-Cola distribution system. About $150m is being paid in Molson shares.
Molson's stake in the Brazilian beer market, the fourth-largest in the world, is set to increase from 3 per cent to almost 18 per cent.
The Canadian brewer first obtained a foothold in Brazil at the end of 2000, when it acquired Bavaria for $100m from Ambev. Ambev still holds a 70 per cent share of the local beer market, making it difficult for any foreign company to compete.
Molson intends to merge Bavaria and Kaiser to form a new company, in which Heineken will acquire a 20 per cent stake for about $220m by the end of the month. Heineken owned a 14.2 per cent stake in Kaiser, which had sales last year of R$1.6bn ($680m). None of the 13 combined Bavaria-Kaiser plants will be closed, said Molson.