Shareholders of Nigerian Breweries Plc have approved the acquisition of an 80% stake in Distell Wines and Spirits Nigeria Limited and the import business of Heineken Beverages (Holdings) Limited. The decision was made at an Extraordinary General Meeting held on December 20, 2023, at the Oriental Hotel in Lagos.
The transaction will allow Nigerian Breweries to hold a majority stake in Distell Nigeria and gain exclusive rights to import, market, and distribute Heineken Beverages' wines, spirits, and ciders brands from South Africa. This includes the potential for local production of these imported brands.
Asue Ighodalo, Board Chairman of Nigerian Breweries, stated that this acquisition is part of the company's strategy to become a Total Beverage Company by expanding its product portfolio to include wines and spirits. "This acquisition is part of efforts to provide access to a complementary multi-category portfolio of fast-growing brands of wines and spirits market segment and capture significant growth opportunities in the wines and spirits segment of the brewing industry," Ighodalo explained.
Boniface Okezie, National Coordinator of Progressive Shareholders Association of Nigeria, praised the board's decision to expand despite challenging business conditions. Uaboi Agbebaku, Company Secretary and Legal Director for Nigerian Breweries Plc, mentioned that shareholders approved approximately N7 billion for the acquisition. He also noted that no further regulatory approval would be needed as it will be treated as internal restructuring by the Federal Competition and Consumer Protection Commission.
Agbebaku added that both parties aim to finalize terms by early 2024: "The parties to the transaction will now proceed to agreeing the final terms and conditions of the sale and purchase agreement with the aim of concluding the transaction in the first quarter of 2024."
Distell Nigeria currently produces wines and ciders locally under license from Heineken Beverages. The acquisition will give Nigerian Breweries access to local production as well as importation rights for several South African brands such as Amarula Crèam Liquor, JC Leroux, Nederburg, Drostdy Haf, 4th Street, Bain’s Whiskey, Knight Whiskey, Chamdor wine ranges, Hunters, and Savanna.
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