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Consolidated Breweries To Merge With Benue Brewery, DIL/Maltex

By on January 14, 2013

The shareholders of Consolidated Breweries Plc have approved the proposed merger between the company, Benue Brewery Ltd and DIL/Maltex.

The company secured the approval at a court ordered meeting which held last Friday.

According to a statement made by the company, the merger is being executed in order to improve operational efficiency, expand growth prospects and maximize value for all stakeholders.

Chairman of Consolidated Breweries, Prof. (Mrs.) Oyinade Odutola-Olurin, said that both companies were subsidiaries of Consolidated with the parent owning 97.83% of DIL/Maltex and 100% of the equity in Benue Brewery.

She said, “It is envisaged that the mergers will lead to administrative efficiencies, cost reductions and operational synergies; and be beneficial to all stakeholders of Consolidated Breweries.

“The post-merger entity would capture positive economies of scale and realise significant synergies through enhanced operational and administrative efficiencies, a streamlined supply chain, and a unified service delivery platform,” she added.

Also speaking on the development, the Chairman of Benue Brewery Ltd said the merger would boost operational efficiency  harness synergies and streamline operations.

He said, “Significant operational synergies will be generated from the optimisation of key operations, particularly the manufacturing, overall management, administration and accounting functions.

“Also, the mergers would result in improved returns to the shareholders and employees while customers would also benefit from access to a wider operational platform.”