Britain-based brewer SABMiller on Tuesday said that its Chinese joint-venture had agreed to buy the brewery business of China beer maker Kingway for US$864 million (638 million euros).

"SABMiller plc announces that China Resources Snow Breweries Limited, its joint venture with China Resources Enterprise, has entered into an agreement with Kingway Brewery Holdings Limited to acquire its brewery business for a total cash consideration of 5.38 billion yuan," a statement said.

Ari Mervis, managing director of SABMiller Asia Pacific, said the purchase gives the maker of Grolsch and Miller Lite beers "greater access to high growth and attractive regional markets in China, thereby enhancing CR Snow's competitive position."