Nigeria: Heineken launches takeover bid for Champions Breweries

Heineken N.V has launched today through its wholly-owned subsidiary, Raysun Nigeria Limited, a mandatory takeover bid for the acquisition of up to 1,196,799,164 ordinary shares from the other shareholders of Champions Breweries Plc. The offering is for NGN 0.50 per share (USD 0.0012) which translates into a total transaction value of NGN 598 million (USD 1.46 million). These shares represent the remaining 15.3% stake in the company that the Dutch brewery does not yet own.

In January, Heineken already increased its ownership in Champions Breweries by 24.3% to 84.7% which gave it the necessary leverage to launch today’s takeover bid. (, 12.1.2021)

The board of Raysun Nigeria granted on May 10, 2021 approval for the takeover bid, as noted in a statement signed by Chairman Dr Elijah Akpan.

As a consequence, shareholders of Champion Breweries urged Heineken to merge Champion Breweries with Nigerian Breweries, another brewery which is majority owned by Heineken.  

Shareholders argued the ongoing consolidation in the breweries sector had placed a multiple-entities strategy in disadvantage to major competitors like AB InBev and Diageo. A consolidation of Heineken’s operations in Nigeria would create synergies in the increasingly competitive market that could deliver greater values to all stakeholders.

Champion Breweries, that is located in Uyo, Akwa Ibom State, produces Champion Lager and Champion Malta as well as a selection on non-alcoholic beverages which are mainly sold in the southern part of the country, excluding the southwest. The company also brews and packages products under contract to Nigerian Breweries Plc., the beer market leader in Nigeria that is also majority owned by Heineken (, 15.8.2020)

Nigeria is due to its huge, young and growing population one of the most attractive beer markets in Africa. Beer production in Nigeria amounts to about 20 million hectoliters. Clear market leader is Nigerian Breweries with 11 production sites in the country and a market share of about 55% in 2019. The company, which is majority owned by Heineken has struggled for growth over the last few years. In contrast, the number two in the market, International Breweries which issince the purchase of Johannesburg-based brewing group SAB Miller in 2016 partofAB InBev is growing and held about 23% of the beer market in 2019. The brewing group opened two years ago a new USD 250 million brewery near Lagos (inside beer, 19.2.2019) which will be extended in stages for another USD 150 million in the coming years. Guinness, the third international brewing group with its own production in the country, is slightly behind AB InBev with a share of 22% in domestic beer sales.

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