Heineken to Merge African Breweries
Heineken has announced that, subject to the customary regulatory and other approvals, it will merge its two majority-owned Nigerian brewing subsidiaries – Nigerian Breweries and Consolidated Breweries. The proposed merger will enable the combined business to fully capitalise on the future growth potential of the highly attractive Nigerian beer and malt drinks market. The transaction is expected to 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.
Africa is one of the world’s most attractive and fastest growing regions for beer, and is a key platform for Heineken’s continued investment and future growth. Nigeria is the continent’s largest economy, with a significant, growing beer and malt drinks market, underpinned by favourable demographics:
* An expanding population of almost 180 million people, of whom more than 70% are under the age of 30;
* Increasing levels of urbanisation;
* A rapidly developing middle class supported by rising income levels.
Heineken holds 54.1% of the shares in Nigerian Breweries, which operates eight breweries, and 53.8% of the shares in Consolidated Breweries, which has three breweries.
