Bavaria, a Dutch brewer, has purchased a 60% stake in Palm Belgian Craft Brewers for an undisclosed amount.

The deal will lead to Palm Belgian Craft Brewers becoming part of the company. Bavaria board head Jan-Renier Swinkels said: "Palm has an important position in the Dutch market and we see opportunities for international growth."

By 2021, Bavaria intends to completely own Palm Belgian. The breweries will have a total production capacity of 6.5 million hectoliters this year.

“The purchase is part of Bavaria’s strategy to bolster its presence in craft beer.”

The purchase is part of Bavaria’s strategy to bolster its presence in craft beer.

On the other hand, this deal will enable Palm to speed up its growth plans. The acquisition will also enable it to secure access to Bavaria’s global network.

Both the firms intend to work on the merger in the next few months. Palm and De Hoorn breweries in Steenhuffel and Rodenbach brewery in Roeselare are part of this purchase.

Bavaria has presence across 120 countries and delivers brands such as Bavaria Premium, Swinckels, and 8.6.

Palm owns five breweries in Belgium and has an annual production capacity of around one million hectoliters.

It produces specialty beers such as Rodenbach, Brugge, Steenbrugge, Cornet, Arthur’s Legacy, and Estaminet.