Heineken is set to close five breweries in Europe, Dutch news reports said today. The Dutch brewer was reported to have said at a press conference that five of Austrian brewer BBAG's 22 breweries will be closed as a part of Heineken's BBAG integration.

Heineken completed its acquisition of BBAG in January when it closed its public offer to buy the brewer's outstanding shares. The Dutch brewer now owns 98.73% of BBAG.

The breweries that are set to close are located in Austria, Poland, Slovakia, Romania and Hungary. The company has not ruled out closing more breweries in the future, but would not specify how many.

Heineken expects its BBAG takeover to lead to €80m (US$101.42m) synergy benefits in 2007. In addition to the €40m cost savings from overlapping activities, Heineken expects €20m worth of benefits from the BBAG reorganisation in Austria. The sale of Heineken brands through BBAG's distribution network is expected to bring another €15m, while the sale of BBAG fruit beverage Pago in Spain and France is expected to bring in €5m.