Heineken has announced it is to merge its majority owned subsidiaries Nigerian Breweries plc and Consolidated Breweries plc to “fully capitalise” on the future growth of Nigeria’s beer and malt drinks market.
Dutch brewer Heineken, which holds 54.1% of the shares in Nigerian Breweries plc and 53.8% of the shares in Consolidated Breweries plc, announced on Friday their intent to merge the two businesses, subject to approval.
According to the company, the merger will create create value for stakeholders and shareholders, drive benefits from increased economies of scale, improve operating and administrative efficiencies and increase the company’s speed and agility in response to market developments.
A spokesperson for Heineken said: “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.”
Favourable conditions cited include an expanding population of almost 180 million people, of whom more than 70% are under the age of 30, increasing levels of urbanisation and a rapidly developing middle class supported by rising income levels.
Nigerian Breweries has eight breweries and two malting plants at present with its brands include Heineken, Star, Gulder, Legend, Life, Goldberg, Amstel Malta, Fayrouz, Malta Gold, and Maltina.
Consolidated Breweries has three breweries with brands including 33 Export, Turbo King, Williams Dark Ale, Hi-Malt and Maltex.
The merger, which is subject to approval, is expected to take several months with Nigerian Breweries plc, as the remaining legal entity, expected to remain listed on the Nigerian Stock Exchange after its completion.