Heineken International, the world’s third-biggest brewer, has announced, subject to the customary regulatory and other approvals, the merger of its majority owned subsidiaries, Nigerian Breweries (NB) Plc and Consolidated Breweries Plc.
A pre-merger notification has been filed with the Nigerian Securities and Exchange Commission (SEC) on behalf of both Nigerian Breweries Plc and Consolidated Breweries Plc, whose approval may take several months .
According to John Clarke, head of external information, Heineken, It is intended that NB, as the remaining legal entity, will remain listed on the Nigerian Stock Exchange after the completion of the merger. Both businesses will continue to operate as usual until regulatory and other approvals are obtained.
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.
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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.
The Dutch company holds 54.1 percent of NB Plc, whose brands include Heineken and Star; and 53.8 percent of the Consolidated Breweries, the maker of beers such as Turbo King.
Nigeria has a significant and growing beer and malt drinks market, underpinned by favourable demographics: an expanding population of almost 180 million people, of whom more than 70 percent are under the age of 30; increasing levels of urbanization and a rapidly developing middle class supported by rising income levels.
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NB was incorporated in 1946, producing its first bottle of Star lager in 1949. The company has eight breweries and two malting plants.
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