By Dominic Chopping

Danish brewer Carlsberg and Japanese peer Sapporo Breweries agreed to form a joint venture to cooperate in Southeast Asia and Hong Kong.

The new venture will include Carlsberg's existing operations in Malaysia, Hong Kong and Singapore--markets where the two companies already collaborate--as well as in Laos, Vietnam and Cambodia.

It will also have exclusive rights to produce and distribute Sapporo Premium Beer across these markets.

Under terms of the deal, Carlsberg will hold a 75% stake, retain full operational control in the markets and receive $643 million in cash from Sapporo, which will hold the remaining 25% stake.

Carlsberg and Sapporo also agreed to a partnership that grants the Danish company a license to produce and distribute Sapporo Premium Beer in the U.K. and Myanmar, with the parties set to explore opportunities to introduce the brand in other European and Asian markets.

"The new joint venture and long-term strategic partnership add Sapporo's premium Japanese brand to Carlsberg's strong portfolio of local and international brands and route-to-market capabilities in Southeast Asia and Hong Kong, enabling us to accelerate our growth ambitions in these important markets," Carlsberg Chief Executive Jacob Aarup-Andersen said.

Sapporo expects the beer market across Southeast Asia and Hong Kong to grow at an annual rate of around 5%. It said that given Carlsberg's strong presence in the region, it is targeting an expansion of Sapporo Premium Beer sales volumes in the target markets of over 10 times the 2025 level by 2035.

"Through this alliance, Sapporo expects to accelerate market expansion in a more capital-efficient manner compared with building its own distribution network, while also benefiting from diversified revenue streams, including dividends, brand licensing, and manufacturing-related earnings," the Japanese company said in a statement.

The joint venture is expected to be established in December, subject to conditions and approvals.

Write to Dominic Chopping at dominic.chopping@wsj.com