Nigeria: Heineken merges Nigerian Breweries and Consolidated Breweries
Heineken has reported in a statement that it is to combine its two units in Nigeria – Nigerian Breweries Plc and Consolidated Breweries Plc – in an effort to improve efficiencies.
The company owns 54.1% of the former, which has brands such as Heineken and Star, and 53.8% of the latter, maker of beers such as Turbo King.
Heineken described the move as being “based on a significant and compelling strategic rationale” and said it would allow the companies to tap growth in sub-Saharan Africa’s second–largest beer market. It went on to say that the combined company would benefit from enhanced purchasing power in areas such as raw materials and deliveries
Nigeria is Africa’s largest economy, and the beer market there sees Heineken compete with other major global players such as Diageo and SABMiller. Business Day reports that Africa has become one of the world’s most attractive and fastest growing regions for beer, and could be key to Heineken’s continued investment and future growth.
Source: Business Day