Heineken gets final approval for Distell Group takeover
By Oghale Mafuru
Heineken, a leading brewing company, is set to deepen its footprints in Africa following approval from the South Africa’s Competition Tribunal to acquire control of Distell Group and Namibia Breweries.
This marks the final regulatory approval after Namibia Competition Commission, the Common Market of Eastern & Southern Africa and all other relevant jurisdictions had approved the acquisition.
The company will be investing approximately €2.4 billion, in return for a 65% stake in the newly formed company which will be made up of €1.2 billion cash pay-out and the contribution of its currently owned assets, including 75% of Heineken South Africa, 100% of its export businesses in certain other African markets, and its minority interest in Namibia Breweries.
According to the company, the implementation is expected to commence next month and will pave new business opportunities for the brand in Africa.
Commenting on this, Dolf van den Brink, Heineken’s CEO and Chairman of the Executive Board said: “We are delighted the Competition Tribunal has approved the deal. We are very excited to bring together three strong businesses to create a regional beverage champion, with a unique multi-category offer to better serve consumers, customers and create shared societal value across Southern Africa. We are committed to being a strong partner for growth and making a positive impact in the communities in which we operate, and the proactive and comprehensive public interest package we’ve put forward is testament to that.
“Today’s approval gives the green light to an ambitious package of public interest commitments, including ongoing business investment, broad-based black economic empowerment, job creation, localization and supplier development, talent development and contribution to the economic development of the region” he added.
In November 2021, Heineken announced its intention to acquire control of Distell and Namibia Breweries Limited NBL, which were to be combined with Heineken South Africa HAS, into a new Heineken majority-owned business (Newco).
This move further strengthens Heineken’s position in Africa as Distell is a major player in ciders, flavoured alcoholic beverages, wines and spirits category across the continent, while Namibia Breweries is the beer market leader in Namibia.
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