Competition Commission greenlights NBL-Heineken deal
Dutch brewer, Heineken International BV can now go ahead with the acquisition of Namibia Breweries Limited Investment Holdings and Distell Group Holdings, following approval from Namibian Competition Commission (NaCC).
Heineken is the second biggest beer producer in the world and is active in the production, marketing, and distribution of beer and other beverages.
The acquisition will thus place NBL in a better position to compete with other global players within and beyond Namibia’s borders such as AB InBev.
However, the approval from NaCC comes with terms that include no retrenchments of employees below management level for five years, products consumed in Namibia must be manufactured or at least be bottled in Namibia, and the creation of an MSME Development Fund.
NaCC also conditioned that local retailers shall be free to allocate up to 10% of Chilled Space/refrigerators in each beverage cooler owned by NBL or Distell Namibia in any on and off consumption Outlet in Namibia.
This comes after the Commission found that NBLs’ commercial policy prohibited retailers from placing other products in NBL branded refrigerators.
“This allocation right shall apply only to products manufactured or packaged in Namibia by Namibian-owned and Namibian-controlled companies,” NaCC said in a statement.
According to NBL, the acquisition could see the foreign direct investment of close to N$10 billion flowing into Namibia and is lauded as a major vote of confidence in the country and the region as a whole.