NETHERLANDS: Heineken eyes EUR25m synergies from Asia Pacific Breweries deal
Heineken is expected to take 100% control of APB this month
Heineken has said that the full integration of Asia Pacific Breweries (APB) into its business will bring synergy benefits of around EUR25m (US$33.5m) over the next two years.
The Dutch group said today (8 February) that the cost synergies will "primarily relate to procurement savings, supply chain efficiencies and the merger of two regional head offices in Singapore into one". Heineken and APB currently have separate corporate offices in Singapore.
The Amsterdam-headquartered brewer also said today that its SGD5.4bn (US$4.3bn) acquisition of the Tiger brewer is expected to “slightly” increase the group's earnings per share in the first year of ownership.
As of today, Heineken owns a 99.6% direct and indirect stake in APB, it said. Under a compulsory acquisition order for the remainder of the shares, the group expects to buy the remaining stock by 18 February. APB's shares will then be delisted from the Singapore Stock Exchange.
“The integration ... is progressing well and in-line with management plans,” the company said in a statement.
The company also today announced a shake-up of its management structure in line with the APB acquisition.
Heineken, the world’s third largest brewer and leading cider producer, continued its aggressive acquisitive expansion in 2012 with the purchase of Asia Pacific Breweries. This profile considers the ex...
Heineken is making efforts to improve its business in the key US market and support sluggish consumption through product innovation, including Indio in June 2012 and Amstel Wheat and Tecate Michelada ...
- SABMiller & Meantime: Notes for the New Owner
- Are Coca-Cola, A-B InBev at a FIFA Crossroads?
- Comment - How to Target Cognac's Mok Generation?
- Focus - The Prosecco shortage that isn't
- Interview - Illva Saronno CEO Augusto Reina
- Whyte & Mackay takes on Flor de Caña in UK
- Diageo takes Baileys, Gordon's marketing in-house
- Carlsberg cuts 180 staff
- Suntory to buy Japan Tobacco beverage unit
- Mixto Tequila poised for "golden age"
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Africa: The Final Frontier for Beer
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review