Nigeria: Heineken gets regulatory approval to merge two its Nigerian subsidiaries

Heineken NV has received regulatory approvals from the Nigeria’s Securities and Exchange Commission (SEC) to merge Nigeria Breweries Limited (NBL), Nigeria’s biggest brewer, with Consolidated Breweries Limited, both under the control of the Dutch-based beer maker, Ventures Africa reported on October 15.

In May, Heineken went public with its intention to merge both companies to boost efficiency and simplify administration.

Heineken holds arguably the largest and most diversified portfolio of alcoholic and non-alcoholic drinks in Nigeria. Its subsidiary, NBL – in which it holds a 54.1 percent share – produces top selling brands including Star Lager Beer, Gulder Lager Beer, Maltina, Legend Extra Stout, Amstel Malta, Heineken Lager Beer, Fayrouz as well as Goldberg Lager Beer, and Malta Gold.

Consolidated Breweries, however is Nigeria’s third largest brewery and producer of “33” Export Lager Beer, Maltex Malt Drink, Hi-Malt and Turbo King Dark Ale. Together, the newly formed company will consolidate its position as the country’s leading provider of beverages.

Though Heineken – the world third-largest brewer – controls a significant share of the beverages market in Nigeria, with its subsidiary NBL holding an estimated 60 percent of the alcoholic drinks market, the decision to merge both NBL and Consolidated Breweries confirms a growing threat from emerging competitors including Diageo, parent company of Guinness Nigeria, and SABMiller, the maker of Heroes Lager Beer.

22 October, 2014