Dutch brewing company Heineken plans to merge its majority owned subsidiaries Nigerian Breweries and Consolidated Breweries, in a move to capitalize on the growth potential of the Nigerian beer and malt drinks market over the future.
Heineken currently owns 54.1% and 53.8% stake in Nigerian Breweries and Consolidated Breweries respectively.
The proposed merger is expected to improve operating and administrative efficiencies; increase the new company's speed and agility in response to market developments; and drive benefits from increased economies of scale, following its completion.
According to Heineken, the merger will also create value for all key stakeholders, particularly shareholders.
Nigerian Breweries has eight breweries and two malting plants at present. Its brands include Heineken, Star, Gulder, Legend, Life, Goldberg, Amstel Malta, Fayrouz, Malta Gold, and Maltina.
Consolidated Breweries, which has three breweries, offers its products under different brands including 33 Export, Turbo King, Williams Dark Ale, Hi-Malt and Maltex.
Both the companies will be operated as usual until the regulatory and other approvals are given.
