Lagos-Nigerian Breweries Plc has begun discussions with Heineken NV regarding the potential acquisition of three of the five breweries recently acquired from Sona Group.
The proposed acquisition is subject to the approval of the Board and shareholders of Nigerian Breweries, as well as relevant regulatory authorities.
The discussions followed from the announcement in January 2011 that Heineken would “explore the possibility of consolidating the newly acquired breweries into its existing business structure in Nigeria during 2011.”
The discussions should lead to the transfer of majority equity interests in Sona Systems Associates Business Management Limited (which owns breweries in Otta and Kaduna) and Life Breweries Company Limited, Onitsha, to Nigerian Breweries.
Nigerian Breweries believes that the proposed transaction will improve the geographic spread of its operations, enable it to address existing capacity constraints and further strengthen its platform for future growth.
The negotiations are expected to be concluded in the coming months and further announcements will be made when appropriate.
Mr. Nicolaas Vervelde, Managing Director/CEO, Nigerian Breweries Plc, said: “The addition of the breweries we propose to acquire from Heineken will significantly broaden our geographic reach and address the capacity restraints we have currently.”