Main image: Beer Factory/News24
Heineken, producer of alcoholic beverages, has received the green light for its takeover bid for wine and cider producer Distell Group.
The latest information suggests that the Competition Tribunal has given the Dutch beer maker the green light, clearing the regulatory hurdles the Dutch brewer had to overcome to close the deal.
According to Moneyweb, the approval by South African competition authorities comes after the Namibian Competition Commission, the Common Market of Eastern and Southern Africa and other concerned jurisdictions gave the green light to the deal.
First announced in November 2021, as also reported by BusinessTech Africa, the deal will see Heineken invest €2.4 billion in Newco – which Distell and Namibia Breweries will all merge with Heineken South Africa under – for a 65% majority stake.
“We are pleased that the Competition Commission has approved the deal. We are very excited to bring together three strong companies to create a regional beverage champion, with a unique multi-category offering to better serve consumers and customers and create shared social value in Southern Africa,” said Dolf, CEO and chairman of the board of directors of Heineken. van den Brink.
“We are committed to being a strong partner for growth and making a positive impact in the communities in which we operate, and the proactive and comprehensive public interest package we have proposed is testament to that.”
In the wake of the announcement, Distell released the Transaction Update Announcement (TUA) to investors on Sens, outlining the next steps in the transaction, as well as the most notable dates leading up to the delisting from the JSE.
The group’s shares are expected to be suspended on the JSE on Wednesday, March 22.
Heineken says it expects the transaction to be executed from April this year and the news saw Distell’s share price spike at R181.62 during midday trading on Thursday, 2.61% stronger than where it started at market open .