China Resources takes a caffeine injection

China Resources Enterprise pays $42 million to buy a majority stake in Pacific Coffee from Chevalier Pacific, earning Chevalier a healthy return on its five-year investment.

China Resources Enterprise CRE has agreed to buy an 80% stake in Pacific Coffee from Hong Kong conglomerate Chevalier Pacific, the two companies said in a joint statement yesterday. Chevalier will retain a 20% holding in one of Hong Kong's favourite coffeehouse chains, but has a three-year option to sell its minority interest to CRE.

Pacific Coffee has built a strong brand in Hong Kong since opening its first café in 1992, and like its rival Starbucks,...

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