E-Malt.com News article: 1908

The Brau acquisition caused losses of EUR 20 million in Hungary and EUR 135 million in Austria, Brau minority shareholders reported in a statement on December 04. They said: “We would like to draw the attention of the international public to the Central European acquisitions of the Heineken Group and to the breaches of the legal regulations it committed in Hungary and Austria. It caused EUR 20 million losses to the Hungarian investors and nearly EUR 90 million losses to the shareholders of the Austrian parent company and further EUR 45 million losses to the Austrian budget. Heineken is also punishing its own shareholders in the long run, since its actions might lead to unforeseeable consequences on the degree of loosing market share.”

“The indecent and arrogant acquisition attempt by Heineken has been for months in the middle of media attention in Hungary, because Heineken is also using unlawful means for the sake of acquiring Brau Hungary. Heineken is trying to acquire one of the most profitable breweries of Europe that holds 26% of the Hungarian market which can be soon regarded as a EU market. Heineken is trying to pay only a fraction of prevailing prices of similar European transactions, what’s more, at the same price Heineken is also trying to squeeze out those investors of Brau Hungary who would like to remain shareholders.”

“Heineken is endangering the success of its Central European acquisition for only 1% of the EUR 1.9 billion paid for the BBAG group that equals to its 10 days of profit. Since then it became obvious that the unlawfully low purchase price means EUR 45-50 million tax savings in Austria, but with the total of EUR 65-70 million overall ‘gains’ on the deal, it is still only 3% of the expenses of the whole transaction so it does not justify taking such a risk.”

“Causing the damage to the Hungarian investors lead to a boycott against Heineken and Amstel products in Hungary. This action has received sympathy support from the neighboring countries (Serbia, Rumania, and Austria). The shareholders of Heineken might also incur losses in the long run as a result of the fading reputation of the Heineken brand and the possible loss of market share, the magnitude and geographical reach of which can hardly be estimated,” Brau minority shareholders added.


10 December, 2003