Eye On Juicier Market Share: S’Africa’s SABMiller To Merge Int’l Breweries, Pabod, Interfact

After over five years of relatively fringe presence, South African brewery giant- SABMiller is working towards fusing its three separate companies in what may be plans to gain better foothold on the nation’s already very competitive beer and malt market.
SABMiller, which was recently acquired by bigger rival and Belgian giant brewer- Anheuser-Busch InBev SA/NV, is seeking regulatory approval to merge International Breweries Plc, listed on the Nigerian Stock Exchange (NSE); Pabod Breweries, based in Port Harcourt and founded by the Rivers State Government, and Intafact Beverages, located in Onitsha, Anambra State.
The decision has been interpreted as an indication that SABMiller is poised to compete better for the Nigerian beer market with renowned giants- Nigerian Breweries and Guinness Nigeria, among others.
SABMiller it was that initially acquired Pabod Breweries in 2008 after years of neglect; followed in January 2012 by the acquisition of InterBrew when it entered into a strategic alliance with the Castel group that had earlier in 2008 acquired the majority stake from the Warsteiner Group.
In a statement to the NSE announcing the merger talks by Muyiwa Ayojimi, company secretary of International Breweries Plc, dated Tuesday, June 6, 2017, International Breweries said its board at a meeting on June 2, “agreed to explore a combination of the three businesses via a scheme of merger, subject to requisite regulatory and shareholders’ approval.”
He assured that the proposed merger would be beneficial to all stakeholders, particularly shareholders, since it is expected to generate both revenue and save costs, while enhancing operational efficiencies and allowing for better resource management, besides helping to streamline operations that would translate to better profit.
The statement said further progress on the merger talks would follow from receipt of regulatory approvals by the Securities & Exchange Commission (SEC), as well as the NSE, after which the parties would take steps to consummate the proposed merger.

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