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.

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