Nigeria: Heineken to merge majority owned subsidiaries Nigerian Breweries and Consolidated Breweries

Heineken, the world’s third largest brewer, has announced that, subject to the customary regulatory and other approvals, its majority owned subsidiaries Nigerian Breweries (NB) plc and Consolidated Breweries plc businesses will be merged.

In a statement on its website on May 9, the brewer said a pre-merger notification has been filed with the Nigerian Securities and Exchange Commission (SEC) on behalf of both companies.

“The proposed merger is based on a significant and compelling strategic rationale and will enable the combined business to fully capitalise on the future growth potential of the highly attractive Nigerian beer and malt drinks market,” the company said in the statement.

“The transaction is expected to create value for all key stakeholders, particularly shareholders, drive benefits from increased economies of scale, enhance operating and administrative efficiencies and increase the new company’s speed and agility in response to market developments.”

Regulatory and other approvals are expected to take several months, and until these have been obtained both businesses will continue to operate as usual. However, after the merger is concluded Nigerian Breweries, was incorporated in 1946, will remain listed on the Nigerian Stock Exchange (NSE).

14 May, 2014