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A unit of China Resources Beer has agreed to acquire a 55.19% stake in Guizhou Jinsha Jiaojiu Winery Industry for RMB 12.3 billion (approx. $1.7 billion). Founded in 1951, Guizhou Jinsha Winery produces and distributes baijiu products under the brands Zhaiyao and Jinsha Huisha in China. Baijiu translates to white liquor and is made from wholegrain. The colourless liquor usually ranges in alcohol content from 40-60%. The acquisition of Guizhou Jinsha Winery is part of China Resources Wine's efforts to diversify its product mix and expand its revenue streams. The deal is expected to significantly enhance the group’s profitability and valuation. Hou Xiaohai, executive director and CEO of China Resources Beer, said: "The acquisition of Guizhou Jinsha Winery is a key initiative of the group’s strategic plans for the baijiu market. It reflects the results of the group’s focus on its alcoholic beverages business, as well as its efforts to facilitate the cooperation between the central and local governments and to expand its core business." He continued: "The acquisition also represents our steady progress in the development of non-beer alcoholic beverages. Guizhou Jinsha Winery has a long brewing history and cultural heritage, which features a unique sauce flavour, presenting extraordinary development potential. We believe... can revitalise Guizhou Jinsha Winery through talent team building, brand development, channel networking and lean management. "Looking ahead, we will integrate our existing baijiu business resources and further strengthen the group's competitiveness and brand value within the Chinese baijiu industry through a ‘dual empowerment’ model to develop both beer and non-beer businesses at the same time. Meanwhile, we will continue to stride forward to our strategy of ‘winning at premium segment’ and uphold our mission of ‘leading industrial development, brewing a better life’." The completion of the transaction is subject to approval from the relevant government authority.