E-Malt.com News article: 1554

Belgian brewer Interbrew signed a €326.9 million strategic partnership agreement with Serbian largest brewer Apatinska Pivara on September 11, the Serbian press reported. Meanwhile, on September 11 Interbrew announced that the Extraordinary Shareholders Meeting of Apatin has approved Interbrew's offer and elected Interbrew as strategic partner for Apatin, the number one brewer in Serbia. This strategic partnership will further strengthen Interbrew's overall leading position in the Central European beer market, Interbrew said.

Under the agreement, stipulating recapitalisation of Apatinska Pivara through a €64.9 million share issue, Interbrew will be obliged to set aside €262 million to purchase the existing shares. The buyer will be required to issue a public offering and purchase the shares at €167.6 per share. Interbrew also pledged to not cut jobs over a five-year period, invest €66 million in the company over the next seven years and a further €34 million in marketing.

Serbian Prime Minister Zoran Zivkovic said that both companies will benefit from the agreement, adding that strategic partnership deals with international companies are the best solution for reviving the Serbian economy.

Brussels-based Interbrew is one of the oldest beer companies in the world. The company has operations in 21 countries world-wide, employing some 35,000 workers. In 2002, Interbrew posted a net turnover of EUR 6.9 billion.

Apatinska Pivara is the largest brewer in South Eastern Europe. The company, whose top brands include Jelen Pivo and Pils Light, has a 39 % share in the Serbian market, which accounts for 5.7 million hectolitres in the largest beer market in the Balkans. Established in 1756, Apatin has a long tradition of brewing the highest quality beer and has well-equipped industrial premises thanks to its focused investment policy.

"The strategic partnership with Apatin will further strengthen Interbrew's position in former Yugoslavia," says Jaak De Witte, Regional President Central Europe for Interbrew, "Apatin will play a key role within Interbrew's Central European network of now 14 breweries and enhance our geographic footprint, brand portfolio and market share in the region."

Ms. Smiljka Grmusa, President of Apatin's Board of Directors, comments, "We are pleased to partner with the region's leading brewer. Interbrew will help us build on our market leadership with their international experience while retaining our brewing heritage."


12 September, 2003