Brazil & Dominican Republic: Ambev pays USD926.5 mln for additional 30% in Cervecería Nacional Dominicana
Anheuser-Busch InBev's Brazilian unit is to increase its share in the Dominican Republic's beer market leader, Cervecería Nacional Dominicana, Valor Economico reported on December 1.
In a filing on December 1, Ambev said that it would pay its partner in the venture, E León Jimenes, US$926.5 mln for an additional 30% of the brewer. The move will take Ambev's total shareholding in CND to 85%, with the remaining 15% held by E León Jimenes.
The transaction is expected to close early next year
According to analysts at JP Morgan, Dominican Republic-based CND accounts for over 90% of the country's beer market. "We welcome the announcement and expect a small positive share reaction," said the analysts. "There was creation of value for parties on both sides of the table. This not only helps Ambev's minorities, but establishes a positive track record should the brewer pursue this kind of M&A structure with another seller in the future."
In 2012, AB InBev confirmed a US$1.24 bln spend to combine its operations in the Dominican Republic with those belonging to E León Jimenes.
E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .