China Resources (Holdings) Co, the parent of China Resources Enterprise and Japan's Kirin Holdings will establish a joint venture in China as early as this year, Reuters reported, citing the Nikkei business daily.

The two beer makers are still in talks on details of the alliance, including capitalization and equity stakes, the newspaper said.

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A Kirin spokeswoman declined to confirm the report, Reuters said.

China Resources produces China's top beer brand, Snow, with SABMiller Plc.

As part of the venture, Kirin will use China Resources' sales network to market its "Ichiban Shibori" and other beer brands, while China Resources will ramp up its beer production by outsourcing some output to Kirin, the Nikkei said.

Kirin and rival Japanese beer makers including Asahi Breweries have been stepping up their overseas expansion given weak growth prospects in the domestic beer market.

Last September, Asahi, which also holds a stake in China's Tsingtao Brewery Group, took a stake in China's No 1 food processing firm, Ting Hsin.