New Tool: ProSource
Checkout our packaging and processing solutions finder, ProSource.

Heineken Investing $2.5 Billion to Create New African Company

Heineken has acquired control of Distell Group Holdings and Namibia Breweries in a move to create a regional African beverage giant.

Heineken Logo

Heineken has announced the South African Competition Tribunal has approved its offer to acquire control of Distell Group Holdings Limited and Namibia Breweries Limited (NBL). The decision marks the final regulatory approval, following those received from the Namibia Competition Commission, the Common Market of Eastern & Southern Africa, and all other relevant jurisdictions.

Heineken announced in November 2021 its intention to acquire control of Distell and Namibia Breweries Limited, which will be combined with Heineken South Africa (HSA) into a new Heineken majority-owned business to be called Newco.

Heineken plans to implement a 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. The transaction is expected to be implemented in April.


Read article   PACK EXPO Southeast Debuts Spring 2025 in Atlanta


“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,” says Heineken CEO and Chairman of the Executive Board Dolf van den Brink. “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.”

Heineken’s total investment in Newco will be approximately $2.5 billion, in return for a 65% shareholding. This comprises cash pay-out of approximately $1.3 billion to be funded from bonds, existing cash resources, and committed credit facilities, and the contribution of its currently owned assets, including 75% of HSA, 100% of its export businesses in certain other African markets, and its minority interest in NBL. 


 


Discover Our Content Hub
Access ProFood World's free educational content library!
Read More
Discover Our Content Hub
Test Your Smarts
Take ProFood World's food safety quiz to prove your knowledge!
Read More
Test Your Smarts