Heineken is expected to take  100% control of APB this month

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.