Nigerian Breweries has secured Securities and Exchange Commission approval for its previously announced merger with Consolidated Breweries.
Both the companies are majority owned subsidiaries of Dutch brewing company Heineken.
Heineken had announced plans to merge both of its subsidiaries in May, in a move to capitalize on the growth potential of the Nigerian beer and malt drinks market over the future.
It currently owns 54.1% and 53.8% stake in Nigerian Breweries and Consolidated Breweries respectively.
When completed, the 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.
The financial terms of the transaction are not disclosed.
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.
