Dutch beer giant Heineken will pour $3.1 billion into a stake in China’s top brewer, expanding its access in the Asian giant’s booming and hotly contested market, the two groups announced Friday.

Heineken has signed a “non-binding” agreement with China Resources Beer to acquire 40 per cent of CRH, the listed entity controlling the Chinese group, for a total of HK$24.35 billion, according to a statement.

In return, China Resources Beer will buy a 0.9 percent stake in Heineken for €464 million ($537 million).

The Dutch firm, which operates three breweries in the country, will merge its operations in China with those of its new partner.

The world’s second biggest beer company will also grant its partner permission to market its eponymous beer brand in China.

Heineken and its Chinese partner are joining forces at a time when competition is becoming fierce in the Chinese market, with consumers turning towards foreign beers and premium products as middle class incomes rise.https://www.phnompenhpost.com/business/heineken-takes-stake-largest-brewer-china