Heineken has secured the purchase of South African wine and spirits maker Distell Group Holdings NV for a price tag of 2.2 billion euros ($2.5 billion). According to a statement on Monday, the Dutch brewery made an offer of 180 Rand per share (approximately $11.82) which fell in line with the recommendation made by the board of Distell.
Following the acquisition, the Heineken majority-owned firm will be valued at 4 billion euros. The newly-formed entity will also pose a higher threat to larger competitors in the market such as Anheuser-Busch InBev SA and Diageo Plc.
In an effort to become a regional force, Heineken is also looking to acquire a majority stake in Namibian breweries Ltd. Such a move will enable the company to produce Windhoek Beer, Klipdrift brandy, and Savannah cider.
Heineken Chief Executive Officer Dolf van den Brink had the following to say on Heineken’s expansion efforts in Southern Africa: “We are very excited to bring together three strong businesses to create a regional beverage champion, perfectly positioned to capture significant growth opportunities in Southern Africa.”
According to Heineken, the acquisition is expected to boost sales at the end of the first year.
