Namibia: Heineken assures President Geingob over Namibia Bbreweries Limited deal

Namibia’s President Hage Geingob has welcomed Heineken’s takeover of Namibia Breweries Limited (NBL), and has reminded the new controlling shareholders to focus on industrialisation and employment-creation, the New Era Live reported on May 8.

Geingob expressed these sentiments on May 7 during a courtesy call by the Ohlthaver & List (O&L) Group.

The purpose of the visit was to update Geingob on the O&L and Heineken transaction, and to introduce new NBL MD Peter Simons, as well as Roland Pirmez, Heineken’s president for Africa, Middle East and Eastern Europe, and Dolf van den Brink, Global CEO of Heineken International.

“It is good that you are holding this meeting in public, with no secrets. Even as the private company that you are, I’m pleased that you decided to keep me in the loop.

"Of course, we are interested in job creation, and value- addition to be done here. Let’s move the country forward together in terms of industrialising it and creating employment,” the President said.

Heineken NV, which is a Dutch multinational brewing company, visited the Head of State to break down its decision on its acquisition of NBL and Distell Holdings Limited, and on how this transaction will benefit the local economy. Heineken is the second-biggest beer producer in the world, and is active in the production, marketing and distribution of beer and other beverages.

The visitors to State House remained confident that Heineken will unlock opportunities globally for the Namibian brands. They were adamant the merger is going to be a success story, going forward.

Van den Brink said they believe in Africa’s potential and demographics. When it comes to Namibia, he emphasised that not much will be changed.

“The public company will remain, and we will not change the name. We feel Namibians are proud of this company. We will build on the legacy set by O&L that we have been part of for the past 20 years. We are also here to take care of Namibians’ well-being,” noted the CEO.

He added that Heineken will strive to localise and develop the Namibian small and medium enterprises’ sector.

Meanwhile, the NBL stated in its interim results booklet for the period ended 31 December 2022 released in March 2023 that the Heineken transaction and the acquisition of Distell Namibia will support the long-term sustainability of NBL as a Namibian icon, while the greater transaction will create a regional beverage champion for southern Africa.

“The most significant opportunities for NBL are to grow and defend volumes and market share in Namibia, and grow NBL’s Windhoek brand beyond Namibian borders; develop and grow local Namibian talent through global exposure,” the report reads.

It added that the transaction will leverage Heineken’s global expertise and supplier relationships to secure, optimise, expand and build local growth capabilities. While realising significant synergies in terms of logistics, the deal is also expected to boost local manufacturing and support functions.

The acquisition of NBL and Distell Group Holdings by Heineken International BV was approved with certain conditions by the Namibian Competition Commission (NaCC) at the beginning of September last year. The approval meant Heineken BV would effectively gain a controlling share of NBL to ultimately place the local brewer in a position to be more competitive with global brands.

The NACC stated that it conducted a careful analysis of the proposed merger, which included extensive consultations with customers, competitors and other relevant industry stakeholders.

“The transaction entails Heineken BV increasing its shareholding in NBL Investment Holdings (Pty) Ltd, and thereby acquiring control over NBL Investment Holdings (Pty) Ltd, which is the holding company of Namibia Breweries Ltd (NBL). The transaction further entails Heineken BV, through NBL, acquiring ` Namibia Ltd, a subsidiary of the Distell Group Holdings Ltd,” the NaCC confirmed at the time via a statement issued by its spokesperson, Dina //Gowases.

09 May, 2023