E-Malt.com News article: 1308

The joint acquisition by Diageo and Heineken of Interbrew's stake in Namibia Breweries Ltd was approved by the EU Commission on July 11. The deal is worth EUR 31 million. Interbrew sells its 44% stake in NBL Investment Holdings, which owns 50.1% of Namibia Breweries. After their purchase of a direct 6.8% participation in the local brewer, Diageo and Heineken will control 28.9% of Namibia Breweries. "If you can share cost of distribution and things such as that, then it is a pretty good proposition for both companies," said Heineken representative Manel Vrijenhoek. Diageo said in a statement, its joint venture with Heineken was a "win-win partnership".

When Interbrew announced the sale in April it also said it had extended its licence agreement with Namibian Breweries for the production, marketing and distribution of the Beck's brand in Namibia and South-Africa for a further 10 years. Interbrew acquired a stake in Namibia Breweries through its purchase of Germany's Becks in August 2001. "Southern Africa is not part of Interbrew’s current strategic geographic focus. However, we look forward to continuing our relationship with Namibian Breweries through the licence agreement," said John Brock, chief executive of Interbrew.

Namibian Breweries, the country's only licensed beer maker, produces around 1.2 million hl of beer per year. About half of the production at Namibia Breweries is exported to 22 countries outside Namibia such as Britain, where the brewer plays an important role due to the high number of South African expatriates.Namibia Breweries brews Windhoek Lager, Windhoek Light and Tafel Lager brands. It also distributes Interbrew’s Beck’s and Diageo’s Guinness beer.

14 July, 2003