Heineken job cuts retrenchments

[FILE] Heineken SA has announced it will trim its workforce by 7% in 2021. Photo: Twitter/Heineken SA

Heineken to buy Distell, Namibia Breweries and form company worth R69 billion

Heineken, the world’s second-largest beer manufacturer, is offering approximately R34.8 billion to acquire Distell.

Heineken job cuts retrenchments

[FILE] Heineken SA has announced it will trim its workforce by 7% in 2021. Photo: Twitter/Heineken SA

Dutch beer giant Heineken announced on Monday, 15 November, that it plans to acquire control of Distell and Namibia Breweries and form a South African drinks group – Newco – with an estimated value of €4 billion (R69 630 824 920).

HEINEKEN TO MERGE SOUTHERN AFRICAN COMPANIES

In a statement on Monday, Heineken said it has entered into an implementation agreement with Distell Group Holdings Limited, Namibia Breweries Limited (NBL) and Ohlthaver & List Group of Companies (O&L) to merge their relevant businesses in Southern Africa into an enlarged company.

As part of the deal, Heineken is offering around R180 per share – €2.2 billion (R34 815 412 460) – for Distell – pending shareholder approval.

The world’s second-largest beer brewer also announced its offer to buy a 50.01 percent stake in NBL from O&L – Heineken already owns the rest of the company, which has a market value of approximately €400  million (6 963 082 492).

Once the deal is complete, Heineken will own a minimum of 65 percent in Newco and the remainder will be held by Distell shareholders who decided to reinvest. Heineken’s total investment in Newco will be an approximate €2.5 billion (R43 519 265 575).

“We are very excited to bring together three strong businesses to create a regional beverage champion, perfectly positioned to capture significant growth opportunities in Southern Africa,” said Heineken CEO Dolf van den Brink.

Meanwhile, Distell CEO Richard Rushton said, “I am excited for what lies ahead as we look to combine our strong and popular brands and highly complementary geographical footprints to create a world-class African company in the alcohol beverage sector.”

(€1 = R17,41 on Monday, 15 November)

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