Heineken publicizes acquisition of Distell and Namibia Breweries

Heineken has recently entered into an agreement to acquire Distell and Namibia Breweries (NBL) after merging with its South African equivalent Heineken South Africa (HSA). The consolidation has been initiated with a motive to create a majority owned business worth €4 billion.

Dolf van den Brink, CEO and Chairman of the executive board stated that the merger will be of substantial benefit to the strength of the company on the global level. He further continued that together, the entity will enable the growth of the expertise and insights to cater to the consumers throughout the region in a better way.

As per reports, the deal will be executed after agreeing to certain conditions, one of which includes a proposed offer of nearly €2.2 billion for Distell given the shareholder approval. The next condition is the subjected possession from NBL of its 25% shares, which has a present market valuation of €400 million in Heineken South Africa.

For the uninitiated, Heineken after the merger will contribute the possessed assets along with the 75% owned shares in HAS and some other completely owned export operations in Africa into an unlisted public holding firm, named Newco.

The 100-year-old African company Heineken will reportedly own 65% of the Newco along with remaining shares owned by Distell. Additionally, the merger will bring together portfolios and route-to-market in the export nations to boost efficiency and growth in the markets of Tanzania and Kenya.

According to credible reports, Newco will form Heineken’s Brew a Better World 2030 commitments which couples its motives of carbon neutrality part of the UN’s Sustainable Development Goals.  

For the record, Heineken Netherlands accelerated its sustainability efforts by brewing beer using green energy. Heineken has been working on its “Brewing a Better World” initiative since 2010 and has reduced emissions of CO2 of the breweries. Along with this, wind turbines and bulk quantity solar panels have also been established to attain its goal.

Source:- https://www.foodingredientsfirst.com/news/heineken-eyes-beverage-empire-in-southern-africa-with-distell-and-namibia-breweries-acquisition.html