Heineken has been granted regulatory approval for its long-mooted acquisition of Distell.
The transaction, initially announced in November 2021, has received the okay from the South African Competition Tribunal this week. Heineken will subsequently proceed with the purchase of Distell, along with almost 60% of Namibian Breweries, next month.
The group will spend around EUR2.4bn [US$2.53bn] on creating Newco, an entity that will comprise Heineken’s existing operations in South Africa [HSA] and its export businesses in nine markets including Kenya, along with all of Distell and 59.4% of Namibian Breweries [NBL]. Heineken will hold 65% of Newco while the balance will be offered to shareholders in Distell.
The remaining 40.6% of Namibian Breweries will be listed publicly.
“We are very excited to bring together three strong businesses to create a regional beverage champion, with a unique multicategory offer to better serve consumers, customers and create shared societal value across Southern Africa,” said group CEO Dolf van den Brink.
The protracted purchase process was smoothed in September when Heineken agreed to divest its Strongbow cider business in several African markets including South Africa. Distell has seen its Savanna cider brand act as a growth engine in recent years: The cider was credited last month with contributing to a near-16% sales increase for the group in the six months to the end of December.
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