(Yicai Global) Jan. 19 -- China's Yantai Changyu Pioneer Wine Co. has acquired majority stake in Australia's Kilikanoon Wines in a move which will help expand global layout of the century-old wine producer and diversify its product range.

Changyu [SHE:000869] announced its decision to sign an equity transfer agreement with the shareholders of Kilikanoon Wines to acquire 80 percent equity for AUD20.6 million (USD16.5 million) in cash in the end of last year. The original shareholders will retain 20 percent equity.

"Changyu has been accelerating its go-global process since 2013. Different from France's Roullet-Fransac Cognac and Chateau Mirefleurs, Spain's Marques del Atrio and Chile's Indomita Wine Company, which produce wine for the mass market, Kilikanoon Wines has several kinds of wine which are high-end products with good reputation. Changyu's global layout needs such a top winery," said Zhou Hongjiang, chairman of Changyu.

Overseas acquisitions allow Changyu to share various resources, such as technologies, raw materials, production, market and talent while realizing diversification of Changyu's product system so that it has both old wine-producing areas in France and Spain and the new ones in Chile and Australia, and both popular classic wine products and high-end boutique wine products, Zhou explained. In this context, Changyu can allocate global resources, integrate global marketing channels and provide global consumers with distinctive wine products.

Founded in 1997, Kilikanoon Wines is located in the Clare Valley, a famous wine producing area in Adelaide, capital of South Australia. It produces and sells mid- and high-end wine products.