The premium at which Tsingtao appears to trade today may be due, at least in part, to the amount of consolidation underway in the brewing industry at present. Only today, for instance, Heineken (HEIN.AS) announced an offer to acquire Asia Pacific Breweries (APBRF.PK) for 50 Singaporean dollars per share, or S$5.1 billion. That ignites a bidding war for ownership of the Southeast Asian entity that will pit Thai and Japanese bidders against Heineken. Clearly, companies in the region are viewed as attractive acquisitions, and given that Tsingtao has 6 billion Chinese yuan on its balance sheet, this may be contributing to the company's premium valuation. (While foreign bidders couldn't acquire Tsingtao outright, they might still be interested to pay a premium for a stake in the company.)