E-Malt.com News article: 912

Heineken and Diageo announced on April 15 that they have agreed to acquire Interbrew's current shareholding (held through Brauerei Beck's) of 44% in Namibian Breweries Limited (NBL Investment Holdings Limited). The stake will be sold for a consideration of EUR 31 million, the Belgian brewer Interbrew reported.

This company holds a 50.1% stake in Namibia Breweries Limited. In addition, Heineken and Diageo acquired a direct stake of 6.8% in Namibia Breweries. As a result, Heineken and Diageo now have an effective 28.9% stake in Namibia Breweries. This stake will be held by a 50/50 joint venture of Heineken and Diageo. For Heineken, the total amount of the transaction is EUR 15.5 million, Heineken reported.

Namibia Breweries will distribute Heineken beer, imported from Europe, as of 1 May 2003 in the region. For Heineken, the distribution network of Namibia Breweries offers not only great opportunities in the Namibian beer market but also in South Africa, where Heineken recently terminated its licensing agreement with SAB.

Namibia Breweries, the sole brewer in Namibia, started brewing beer in 1920 and currently operates two breweries: one in the capital of Namibia, Windhoek and one in the coastal town of Swakopmund.

In 2002 the company sold 1.1 million hl of beer and 300,000 hl of soft drinks. Its main beer brands are Windhoek Lager, Windhoek Light and Tafel Lager. Other beer brands include Windhoek Special Lager, Windhoek Export, Das Pilsener, Urbock and a beer shandy called Club Shandy, while Beck's and Guinness are brewed under licence and marketed through Namibia Breweries' well-established sales and distribution networks in Namibia and South Africa. Export of Namibia Breweries' beers and soft drinks is playing an important role with more than 50% of production finding its way to 22 countries outside Namibia.

The 28.9% direct and indirect stake in Namibian Breweries came into Interbrew's portfolio in February 2002, as part of the completion of the Beck & Co acquisition. Namibian Breweries is the sole brewer in its country, with a volume of 1.2 million hl.

Interbrew also extended its license agreement with Namibian Breweries for the production, marketing and distribution of its powerhouse brand Beck'sŪ for another 10 years, providing new opportunities to grow Beck'sŪ current volume in the region.

"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 license agreement." said John F. Brock, CEO of Interbrew.


15 April, 2003