Nigerian Breweries plc and Consolidated Breweries plc to Merge
12 May 2014 --- Heineken N.V. has announced that, subject to the customary regulatory and other approvals, its majority owned subsidiaries Nigerian Breweries plc and Consolidated Breweries plc have confirmed their intent to merge the two businesses. To this end, a pre-merger notification has been filed with the Nigerian Securities and Exchange Commission on behalf of both Nigerian Breweries plc and Consolidated Breweries plc.
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. 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
• 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
Regulatory and other approvals are expected to take several months, and until these have been obtained both businesses will continue to operate as usual. It is intended that Nigerian Breweries plc as the remaining legal entity will remain listed on the Nigerian Stock Exchange after the completion of the merger.
