![#](www.e-malt.com/images/left_top_corner16x200.gif) | E-Malt.com News article: Namibia: Namibia Breweries financial diretor confidente of approval of majority stake sale to Heineken![Brewery news](https://e-malt.com/Images/BeerBullet2.gif)
Listed beverages maker Namibia Breweries Limited's financial director, Walder von Lieres, said he was confident the sale of 50,01% of the company to Heineken will be approved by the competition watchdog, the Namibian reported.
He said this at the public consultations on the deal on June 9, citing that competition will not be negatively impacted.
“We are very confident that we have presented a good case of why this is a compelling merger for Namibia Breweries and for the merging parties. We are confident that approval will be granted within the time frame set,” he said.
Considered to be one of the biggest deals in the country recently, Netherlands beermaker Heineken NV last year entered an agreement with the Ohlthaver & List (O&L) Group to buy its stake in Namibia Breweries Limited (NBL), valued at about N$3,5 billion.
Heineken, to date, has not disclosed how much it will pay for the stake.
At the public consultations in Windhoek on June 9, the Namibian Competition Commission chief executive Vitalis Ndalikokule said the deal was one of the big transactions in the economy and all views would be respected and considered in rejecting or accepting the buyout.
“We want to bring the voice of all concerned before we bring the matter to our board, “ he said.
In its full picture, Heineken is set to acquire NBL, which will also sell 25% of its stake in Heineken SA back to Heineken. The deal will also see NBL buying up the operations of Distell Group Holdings Namibia.
By controlling both Distell and NBL, Hieneken is poised to strengthen its position in South Africa, control the market leader in Namibia, and further strengthen its footprint across southern Africa, the company said.
According to NBL, it would remain listed on the Namibian Stock Exchange. It will also retain its own board, its own management team based in Namibia. The company said this approach follows Heineken's global best practices where local management is responsible for running the business while drawing on expertise and support from Heineken.
Heineken already owns 49,99% in NBL.
NBL assured that the over 860 permanent employees – 99,5% of which are citizens – will remain in the company's employ.
NBL said while there are concerns around competition, this transaction would create a more effective rival to AB InBev, the global and regional giant.
The deal would also see NBL amass benefits in acquiring Distell Namibia, as it will bring a wider portfolio to consumers and “localise” Distell.
It will also see most of Distell volumes produced in Namibia (zero currently) – with a retail value of approximately N$1 billion. Producing locally would see the company saving on transport and the value addition and opportunities created will be localised.
It is not clear how much NBL is paying to acquire 100% of Distell Namibia.
At the release of interim financials, NBL indicated that it is expecting an approval either late this year or early 2023.
“This transaction enhances NBL's capabilities and creates growth opportunities, and there are no plans to move any production or sourcing of inputs out of Namibia. The deal will also have some production, finishing and packaging moved to Namibia and will grow demand for NBL products,” reads the presentation by NBL.
The company said the deal will be good for competition, create new opportunities for input suppliers and other stakeholders.
It is not clear when the final call on the approval or rejection will be communicated.
10 June, 2022
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