Nigeria: AB InBev proposes merger of its three Nigerian beer companies

Anheuser-Busch InBev has proposed a merger of the three Nigerian beer companies in which it holds majority control.

International Breweries, Intafact Beverages and Pabod Breweries will be combined into one entity in the country, should their respective boards secure regulatory and shareholder approval. If cleared, the new company will be "one of the leading listed companies in Nigeria, and one of the largest brewers in Africa's biggest economy," AB InBev said earlier this week.

The group holds a 72.2% stake in International Breweries - which is listed on the Nigerian Stock Exchange - as well as 75% of Intafact and 82.8% of Pabod. It inherited the International Breweries and Pabod Breweries stakes when it acquired SABMiller last year for US$106bn.

"The proposed merger is expected to ... create value by generating both revenue and cost synergies, enhanced operational efficiencies, better resource management and more streamlined operations," AB InBev said.

AB InBev's zone president for Africa, Ricardo Tadeu, added: "The enlarged company would have a significantly increased geographical footprint and a consolidated database system, enabling enhanced efficiency."

Specific details on the potential efficiencies were not immediately available.

As well as these three breweries, AB InBev owns spirits business Beverage Management Services in the country.

Last month, CEO Carlos Brito admitted that the brewer is looking to increase capacity in Nigeria, as it tries to deal with double-digit volume gains.

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