In a Tuesday statement, SABMiller revealed that it has decided to make a HK$6.6 billion ($851 million) payment, via its joint venture in China, for the acquisition of beermaking assets from Kingway Brewery Holdings Ltd.

According to the recent disclosure by SABMiller, the China-based Kingway Brewery will be acquired through China Resources Snow Breweries Ltd. (CR Snow), which is SABMiller's Chinese joint venture with government-backed China Resources Enterprise Ltd. (CRE).

Under the deal, for which Anheuser-Busch InBev and Beijing Yanjing Brewery were also competing, CR Snow will take over the manufacturing and sales business of Kingway, including seven breweries of the company.

CR Snow - which is the manufacturer of the `Snow' beer brand - finalized the acquisition deal with Kingway, after a previously unsuccessful attempt by Kingway to sell the beermaking business. According to some earlier reports, citing information shared by unidentified `inside' sources, Kingway had drawn an offer from Anheuser-Busch InBev last year; while Beijing Yanjing Brewery was close to striking a deal for the acquisition of Kingway's assets in April.

Meanwhile, noting that CRE made the "right decision" in acquiring Kingway even though the company is "currently loss-making," CRE Chairman Chen Lang told reporters in Hong Kong: "About 50 of our 80 breweries came through acquisitions. We have a track record of turning things around in three to five years."