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Heineken NV, which is currently the third-biggest brewer in the world, revealed in an official statement today that it reached an agreement to sell its packaging operations in Mexico to Crown Holdings Inc.

The price of the deal, which is expected to be finalized by the end of the year and is pending regulatory approval, is estimated to about $1.23 billion in cash. The sale will allow Heineken NV narrow its focus on beer production.

As reported by the Wall Street Journal, Heineken said in its statement: “Divesting the Empaque packaging operations will allow Heineken to focus its resources fully on brewing, marketing and selling its portfolio of beer brands.”

The brewer initially acquired the packaging business, which produces metal beverage cans, aluminium closures and glass bottles, four years ago. The division, whose revenue was estimated to €495 million last year, will remain as one of Heinekens suppliers after the deal is closed.

The sale will earn Heineken €300 million ($394 million) after taxes. The all-cash takeover will also be beneficial to Crown Holdings Inc., as it is expected to turn it into the second-biggest beverage can maker on the territory of North America.

Crown Holdings Inc. CEO Mr. John Conway said, cited by the Wall Street Journal: “This transaction will allow us to expand our presence in the growing Mexican market, significantly strengthen our global beverage packaging business and deliver compelling benefits to shareholders.”

Heineken NV added 0.10% to trade at €57.96 per share at 09:04 GMT in Amsterdam, marking a one year change of +11.57%. The brewer is valued at €33.35 billion. According to the Financial Times, the 25 analysts offering 12-month price targets for Heineken NV have a median target of €59.00, with a high estimate of €69.00 and a low estimate of €47.00. The median estimate represents a 1.90% increase from the previous close of €57.90.

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