Dutch brewer Heineken takes over Ethiopian breweries


Posted on August 1, 2011 13:50

Heineken, the leading Dutch brewer will next week sign an agreement with the Ethiopian privatisation and public enterprise supervision authority (PPESA) for the purchase of two local breweries for more than US$ 163 million.

The deal to buy Harar Brewery SC and Bedele Brewery SC breweries was reached early this year after months of negotiations.

According to PPESA, Heineken’s bid to buy Harar and Bedele for US$ 78.18 million and US$ 85.24 million, respectively, was approved in April.

Heineken’s bid for Harar Brewery was won without competition but it had to brush aside three competitive bids for Bedele.

The Dutch giant beat a US$70 million dollar bid from South-West Development, a US$ 68 million challenge from BGI and Carlsberg which was offering US$ 64 million.

The two breweries produce the most famous beer brands in Ethiopia.

There were reports that Heineken had paid 30 percent of the amount for the purchase of the breweries and the remainder would be settled when the deal is sealed next week.

Heineken said it will continue to brew local brands such as Bedele, Harar and Hakim Stout, which have a combined market share of 18% in Ethiopia.

The breweries have a total capacity of about 15 million gallons of beer a year.

The deal will make Heineken the second biggest brewer in Ethiopia, after BGI Castel, which has a 50% market share.

Harar brewery is located in the historical town of Harar about 530 km east of Addis Ababa, and is the only brewery in the eastern part of the country.

It is the closest brewery to the Djibouti and Somalia ports, giving the company a chance to export.

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