ABINBEV Restates Commitment to Nigeria with $250m Investment
As part of efforts to increase its market share,ABINBEV, one of the world’s largest brewer has merged three of its subsidiaries and has also injected over $250 million into building second largest brewery plant in Africa.
The company announced the merger of International Breweries, Intafact beverages limited and Pabod Breweries, stating that the business combination strategy would enable it expand, access new markets, access cheaper funds, reduce cost and enhance its operational efficiencies.
Presently, International Breweries, which is listed on the Nigerian Stock Exchange, has1.5 million hectolitres capacity, while Intafact beverages based in Onitsha has a capacity of 2.7 million hectoliter. Pabod Breweries in Port Harcourt has 1.5 million hectolitres capacity.
Speaking yesterday at a media briefing, the Managing Director Designate, International Breweries Plc, Mrs. Annabelle Degroot said: “We are committed to long term investment in Nigeria. So, the business here is on the spotlight on ABINBEV global corporation who believes there is a lot of opportunity just as many companies do believe in Nigeria.
“Already, we are investing in 4th and large brewery outside Lagos in Shagamu that would come online next year, and it is our largest brewery in Africa outside of South Africa.
“That shows the commitment of the group to the country and the level of investment which for that brewery is over $250 million.”
Speaking further on the merger, Degroot said: “We have decided that running these three companies individually has not been as efficient as it can.
“We have reached a size where it makes sense now for us to merge these companies together and act as one larger corporation to well in Nigeria. It is welcomed by the board of Intafact and the other two companies.
“AbInbev would have the majority shareholding so we would have over 70 percent of the shares and all companies would merge into international breweries.”