SABMiller (OTC:SBMRY) announced Tuesday that the Chinese joint venture it participates in will acquire Kingway Brewery Holdings. China Resources Snow Breweries will pay 5.38 billion yuan ($855 million) in cash for the company, which is based in the province of Guangdong.

Kingway operates seven breweries, four of which are located in Guangdong. The remaining three are situated in the Sichuan and Shannxi provinces, and the Tianjin municipality. All told, Kingway's production capacity is 14.5 million hectoliters annually. In 2011, Kingway's brewery business sold 9.3 million hectoliters of beer.

The transaction is subject to approval from Kingway shareholders and the relevant regulatory authorities. SABMiller has more than 200 beer brands including global brands Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft, and Grolsch and the Snow brand in China.

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