Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Heineken to Create Africa Beer Giant With Nigeria Merger

May 9 (Bloomberg) -- Heineken NV, the world’s third-biggest brewer, said it plans to merge its two units in Nigeria, pooling the country’s industry leader with the no. 3 beermaker.

Nigerian Breweries Plc and Consolidated Breweries Plc will combine to become more efficient, Amsterdam-based Heineken said today in a statement. The Dutch company holds 54.1 percent of the former, whose brands include Heineken and Star, and 53.8 percent of the latter, the maker of beers such as Turbo King.

The combination is “based on a significant and compelling strategic rationale” and will allow the companies to tap growth in sub-Saharan Africa’s second-largest beer market, Heineken said. Benefits will come from economies of scale such as combined purchasing of raw materials or deliveries, it said.

Lagos-listed Nigerian Breweries was incorporated in 1946, producing its first bottle of Star lager in 1949. The company has eight breweries and two malting plants. Consolidated Breweries, majority owned by Heineken since 2005, ranks behind Guinness Nigeria Plc in the country’s beer market.

Regulatory approval may take several months, and the businesses will operate as usual until then, Heineken said. Nigerian Breweries will remain listed after the merger, it said.

Heineken competes with Diageo Plc and SABMiller Plc in Nigeria, which has been wracked by political upheaval and economic uncertainty. Brewers are looking to tap booming economic growth in emerging markets.

Heineken reported “low double-digit” percentage growth in volume in its fiscal first quarter on April 24.

To contact the reporter on this story: Clementine Fletcher in London at cfletcher5@bloomberg.net

To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net Paul Jarvis, Ben Holland

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.