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. Last Updated: 07/27/2016

Heineken Buys Urals Brewery

AMSTERDAM -- Dutch brewer Heineken said on Friday it had signed an agreement to acquire Patra brewery in Yekaterinburg.

The world's No. 4 brewer said the transaction would be funded from available cash resources. It added the acquisition would increase earnings in 2005 and enhance value in 2010. The acquisition price was not disclosed.

Heineken said that as a result of this transaction, its market share in Russia would grow to 8.3 percent, with volumes over 7 million hectoliters.

Its market share is currently 7.5 percent, and Heineken expects the Russian beer market to grow by 5.5 percent to over 89 million hectoliters in 2005.

Vedomosti said last month that Heineken was buying Petra from industrial holding Alfa Group, and analysts estimated the brewery to be worth $50 million.

The brewery has a sales capacity of 1 million hectoliters, and production capacity can be increased up to 3 million hectoliters.

Heineken said the brewery had regional beer brands Patra, Strelets and Zhigulevskoye as well as soft drinks.

"The acquisition of the Patra brewery fits perfectly in Heineken's strategy of selectively acquiring value-creating assets in growth markets," chief executive designate Jean Francois van Boxmeer said in a statement.