SABMILLER Plc's joint venture in China has agreed to pay HK$6.6 billion (US$851 million) for beer-making assets from Kingway Brewery Holdings to boost its share of the world's biggest market for the beverage.

China Resources Snow Breweries Ltd, which SABMiller co-owns with China Resources Enterprise Ltd, will acquire Kingway's production and sales business, including seven breweries, according to a statement yesterday. The transaction price includes about US$33 million worth of loans.

"Kingway is currently loss-making, but we believe we made a right decision," Chen Lang, chairman of China Resources Enterprise, said at a press conference 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."