Nigerian Breweries (NB) Ltd, a brewing company, is poised to enhance its market presence through a 7.01 billion naira ($8.4 million) deal to acquire Heineken's Nigerian subsidiaries. This strategic move involves obtaining an 80 percent share in Distell Wines and Spirits Nigeria (DWSN) and complete ownership of Heineken Beverages Ltd's import business. Once finalized, NB will hold exclusive rights to import Heineken Beverages' wines, spirits, and ciders from South Africa, with licensing and distribution rights in Nigeria, including the option for local production.
Following the acquisition, DWSN will become a subsidiary of NB, solidifying its market leadership, while NB expands operations into importing, marketing, and distributing a diversified portfolio of wines, spirits, and cider products. The board expressed satisfaction with the terms and plans to recommend the proposal to shareholders, highlighting the move's potential to strengthen market share and cater to a broader consumer base. The final decision will be disclosed after the upcoming shareholder meeting, aligning with NB's goal of product diversification for sustained growth and long-term profitability. This strategic initiative positions NB to capitalize on growth opportunities in the non-beer beverage market.