Zimbabwe & Zambia: Delta Corp to buy controlling stake in AB InBevs National Breweries
Delta Corp Ltd., Zimbabwes biggest company by market value, agreed to buy a controlling stake in a Zambian sorghum-beer maker in the brewers first foray outside its home market, Bloomberg reported on October 13.
The purchase of National Breweries Plc will increase the Harare-based companys exposure to the plant-based alcoholic drink, Delta said in a statement on October 13. The shares will be bought from Heinrichs Syndicate Ltd., which is also a unit of the worlds largest brewer, Anheuser-Busch InBev SA/NV.
This investment opportunity fits well with the companys multi-beverage strategy, Delta said, without putting a value on the transaction.
The expansion into neighbouring Zambia will help Delta battle weak economic growth and a cash crunch in its home market, although on Wednesday the company reported a pickup in lager sales due to improved disposable incomes. The brewer reports official half-year results on Nov 9.
Delta said in a trading statement this week its second-quarter revenue rose 1 percent and for the first half of the year it was up 2 percent.
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