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.
The UK arm of Heineken has been admonished by the country's Advertising Standards Authority for a television advert that ran earlier this year....
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