Dutch brewing company Heineken China has signed non-binding agreements with China Resources Enterprise (CRE) and China Resources Beer (CR Beer) to create a long-term strategic partnership for Mainland China, Hong Kong and Macau.

Under the agreement, Heineken will invest HK$24.3bn ($3.9bn) to acquire a 40% stake in CR Beer’s parent company CRH, which is owned by CRE.

In exchange, CRE will acquire a 0.9% stake in Heineken China for €464m.

As part of the new partnership, Heineken China’s existing operations will be merged with CR Beer’s operations and the Heineken brand will be licenced in China to CR Beer on a long-term basis.

“As part of the new partnership, Heineken China’s existing operations will be merged with CR Beer’s operations.”

Heineken executive board chairman and CEO Jean-François van Boxmeer said: “We believe that our strong Heineken brand and marketing capabilities, combined with CR Beer’s deep understanding of the local market, its scale and best-in-class distribution network will create a winning combination in the growing premium beer segment in China.”

Heineken will also serve as CRE’s exclusive partner for international premium lager in China. Together, they will investigate other Heineken brands to assess whether they can be licenced to CR Beer in China.

CRE chairman Chen Lang said: “With Heineken’s long heritage and world-class iconic brand portfolio, along with our leading presence and deep understanding of China, we believe we can win together in this new era of the Chinese beer market, in which the premium segment will become increasingly important.

“In Heineken, we have found the perfect partner to achieve our ambitions in China and, as an international partner, to support us in growing our business outside China.”