Heineken N.V has agreed to sell its China business to China Resources Beer Holding Company Limited (CRH Beer Ltd) in exchange for a 40% stake in the company. CRH Beer is the parent company of CR Beer, China’s largest beer company and maker of popular Snow beer in China.

The $3.1bn investment will give Heineken a strong local partner in a market where it has struggled to break into ever since entering the market in 1983.