Business
World largest brewer to merge Nigerian businesses
World largest brewer, Anheuser-Busch InBev has initiated plans to merge its Nigerian businesses as it braces to challenge the dominance of Heineken’s Nigerian Breweries and Diageo’s Guinness Nigeria in Africa’s most populous economy.
Preliminary details of the merger indicated that three indirect Nigerian subsidiaries of Anheuser-Busch InBev- International Breweries Plc, Intafact Beverages Limited and Pabod Breweries Limited, would be merged.
International Breweries, which is quoted on the Nigerian Stock Exchange (NSE) is expected to be the post-merger company. Already, the proposed merger has been approved by the board of International Breweries and the firm has filed notification of the merger with the NSE.
“The proposed merger is expected to generate both revenue and cost synergies, enhanced operational efficiencies, better resource management and more streamlined operations,” the regulatory notice by International Breweries stated.
Read also: Shareholders approve N140bn rights issue for Lafarge Africa
With the three breweries located strategically in three regions, the merger appeared to be a major plan to consolidate the operations of Anheuser-Busch InBev and take on its two main competitors in the Nigerian market.
International Breweries is located in Ilesa, Osun State in the South West region. Intafact Beverages’ brewery is situated in Onitsha, Anambra State in the South-East region while Pabod Breweries is located in Oginigba, Port Harcourt, Rivers Sate in the South-South region.
Anheuser-Busch InBev had recently indicated it plans to spend $400 million in establishing a major brewery in Nigeria as it moves to take on the two main Nigerian beer market leaders- Nigerian Breweries and Guinness Nigeria.
Anheuser-Busch InBev’s African Chief Executive Officer, Ricardo Tadeu had told Bloomberg that the company is “prioritizing what we need to do in Africa, rather than trying to find new things”.
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