NB Plc Receives Offer to Acquire Distell Wines and Spirits Nigeria Ltd

Nigerian Breweries (NB) Plc has recently announced that it has received an offer to purchase the majority shares (80%) of Distell Wines and Spirits Nigeria Limited. The offer was disclosed in a regulatory filing on the Nigerian Exchange website.

During a specially convened meeting held on May 30, 2023, the board of directors of Nigerian Breweries was presented with an offer from Heineken Beverages, South Africa. The brewer notified the Nigerian Exchange Limited and the investing public about the offer, which entails acquiring Heineken Beverages’ majority interests in Distell Wines & Spirits Nigeria Limited.

Distell Nigeria engages in the local production of wines, including still and sparkling varieties, as well as ciders. Additionally, it imports wines, spirits, and flavored alcoholic beverages from the Distell Group in South Africa. The company’s brand portfolio consists of popular names such as Amarula, JC Leroux, Nederburg, Drostdy Haf, 4th Street, Bain’s, Knights, Chamdor, Hunters, and Savanna.

In its statement, Nigerian Breweries revealed that its board of directors has decided to thoroughly review the offer with the assistance of external legal and financial advisors. They plan to make a final decision in the upcoming weeks.

Distell Nigeria operates as a subsidiary of Distell International Limited, a company wholly owned by Heineken Beverages. Distell International Limited currently holds an 80% shareholding in Distell Nigeria, which was established in 2018 and has its headquarters in Lagos, Nigeria.

The potential acquisition of Distell Wines and Spirits Nigeria Limited by Nigerian Breweries signifies a strategic move for both companies. Nigerian Breweries, one of the leading brewers in Nigeria, aims to expand its presence in the alcoholic beverage market by incorporating Distell’s diverse portfolio of wines and spirits. This acquisition could strengthen Nigerian Breweries’ position in the industry and provide opportunities for growth and innovation.

For Heineken Beverages, the offer to sell its majority interests in Distell Nigeria aligns with its strategic focus and priorities. By divesting its stake in Distell, Heineken Beverages can streamline its operations and allocate resources to other key markets and ventures. This move may allow Heineken Beverages to concentrate on its core business areas while maintaining a beneficial relationship with Nigerian Breweries through the sale.

The final decision regarding the offer will be eagerly awaited by stakeholders and industry observers, as it has the potential to reshape the alcoholic beverage landscape in Nigeria. The outcome of the acquisition process will depend on various factors, including the evaluation by Nigerian Breweries’ board of directors and the regulatory approvals required.