Scrutiny of the multi-billion-dollar deal between Heineken NV and Namibian Breweries Limited (NBL) by the Namibia Competition Commission (NaCC) continues over its likely impact on competition in the local beer industry.
NaCC, which is entrusted with promoting and safeguarding competition in the domestic economy, is set to hold a stakeholder conference next week following a public consultation process which closed off at the beginning of March, 2022.
After the investigations, the regulatory body will then issue a verdict which will have a material impact on the deal targeted for completion this year.
“The ball is in motion and only time will reveal. We see a bit of a duality here, 1. NBL communicating aggressively on how nothing is set in stone and that investors should take caution (standard conservatism), 2. We are sensing that this is a done deal and only a matter of time / formalities,” said Simonis Storm in an earlier note on the deal.
Under the terms of the deal, Heineken NV has offered to buy Ohlthaver & List Group of Companies (O&L)’s 50.01% stake in NBL Investment Holdings (Proprietary) Limited (NBLIH), the controlling shareholder with a 59.4% shareholding in Namibian Breweries Limited (NBL).
Heineken already owns a 49.99% interest in NBLIH and will become the majority shareholder of the brewer on completion of the transaction this year.
This comes as Heineken has also offered to buy NBL’s 25% shareholding in Heineken South Africa (RF) Proprietary Limited for N$5.4 billion. Proceeds from the transactions will be declared as a special dividend to NBL’s current shareholders.
The NaCC stakeholder conference comes as NBL shareholders at the end of April approved its plans to acquire Distell Namibia for N$1.64 billion.
The 95.25% approval by NBL eligible shareholders that voted comes after the listed brewer had established an independent committee of the Board for purposes of considering the Distell Namibia Acquisition and other related matters, including evaluating the terms and conditions of the Distell Namibia Acquisition and advising Shareholders, comprised of Ombu Capital founder, Vetumbuavi Mungunda and Afra Schimming-Chase.
Distell Namibia owns and operates four distribution depots across Namibia (Windhoek, Oshakati, Walvis Bay and Keetmanshoop).
In South Africa, shareholders of wine and spirits maker Distell Group Holdings Limited voted in favour of being acquired by Heineken, which creates a new regional group to compete with larger competitors Anheuser-Busch InBev NV and liquor giant Diageo Plc.
Heineken plans to combine its Namibia and South Africa businesses into a behemoth with a total valuation of about €4 billion.
