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Nigerian Breweries, Consolidated Breweries in merger talks

By BusinessNews Staff on May 13, 2014

Nigerian Breweries Plc and Consolidated Breweries Plc are in talks over a possible merger of both firms.

In a joint statement, which was made available to our correspondent on Sunday, the firms confirmed that their respective boards of Directors had agreed to explore a combination of the two businesses “by way of a scheme of merger subject to regulatory approvals.”

The firms also confirmed that a pre-merger application had been filed with the Securities and Exchange Commission for approval, while Nigerian Breweries Plc had duly lodged a notification with the Nigerian Stock Exchange, on which it is listed.

The statement read in part, “On receipt of the regulatory approval, both parties will take further steps to consummate the proposed merger, including obtaining the approval of their respective shareholders to the scheme of merger at separate court-ordered meetings.

“Until regulatory and other approvals are obtained, both companies (who are majority-owned subsidiaries of Heineken NV) will continue to operate as usual.”

According to the statement, the proposed merger of both companies is expected to create value for all key stakeholders, particularly shareholders, and drive benefits from increased economies of scale, and enhance operating and administrative efficiencies.

[Punch]

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