/ 5 August 2001

SAB looms over Namibian brewing

EDGAR BRANDT, Windhoek | Friday

SOUTH African Breweries (SAB) is in the running for the takeover of German brewer, Beck & Co, in a venture which could see the giant brewer automatically becoming a part owner of Namibia Breweries Limited (NBL)Becks holds a 49% stake in Namibia Breweries Investment Holdings, which in turn owns 50,1% of NamBrew.

Owners of the German family-owned brewer recently concluded that the 128-year-old maker of Becks beer was too small to compete as an independent concern in an increasingly competitive global market.

SAB on Wednesday confirmed that it was interested in the possible acquisition of Becks & Co but said it would not comment on market rumours.

“We will look at all possibilities,” SAB (Plc) Director of Communication, Nick Chaloner, said from London.

If SAB succeeds in picking up the German brewer it would effectively give them 49% of Namibia Breweries Investment Holdings (NBIH).

The Ohlthaver and List Group is the majority shareholder in NBIH.

However, local stockbroker, Jolyon Irwin, yesterday told The Namibian that SAB was not a front-runner in the race for Becks.

He said a Belgian company, Interbrew, had made a $1,43-billion bid for Beck & Co, and had been granted the exclusive bargaining rights at this stage.

Four of the world’s leading brewers have shown an interest in Becks, including St Louis-based Anheuser-Busch Cos, Interbrew, British brewer Scottish and Newcastle, and SAB (Plc).

O&L Group spokesperson, Gerhard Roux, said on enquiry that the Group was obviously interested in the outcome of the negotiations but declined to comment further.”

“Since these are, however, entirely at present a domestic issue for Beck & Co, the Ohlthaver and List Group refrains from any comment at this stage,” said Roux.

Speaking to The Namibian from Beck & Co’s headquarters in Germany yesterday, press officer Ulrike Gruenrock said discussions with prospective buyers had started 10 days ago and were expected to last “for a couple of months”.

Gruenrock added that she was quite sure the company would be sold to an international brewer and not to a German company.

Becks’ decision to sell stems from a study commissioned in early June to illustrate the future perspectives of the company and its brand in fast-moving markets.

The first results were presented to the company’s owners on July 14 in Bremen.

On the basis of these figures and forecasts the partners decided to divest their interests in the company.

The decision was motivated by the fact that the partners no longer saw themselves in a position to provide the necessary investment funds and structures required for the continued success of the company and its international “Becks” brand.

According to Gruenrock the company’s business relations will not be affected in any way by the ensuing sales process.

Beck & Co’s beverage sales last year amounted to 8,735 million hectolitres, of which beer accounted for 5,743 million hectolitres.

Beer sales were up 6% in Germany and 10 per cent on the company’s foreign markets. – The Namibian