Categories: Stories

Delta Zimbabwe expects no changes as parent firm SABMiller is taken over

Delta Corporation says it expects no changes to its relationship with its new shareholders after regulators approved principal owner, SABMiller’s takeover by Belgium-based brewer, AB InBev.

SABMiller owns 38 percent of the Zimbabwe associate, but it’s shareholders approved the takeover by Anheuser-Busch InBev in September last year for $104 billion in one of the largest corporate deals in history.

AB InBev is already the world’s biggest brewer with SABMiller as its closest rival.

Delta said yesterday the transaction will be completed by next Monday, October 10 after various regulators approved the takeover.

The new entity which will go by the name Anheuser-Busch InBev SA/NV,  will be headquartered in Leuven, Belgium and be listed on the Euronet Brussels, Johannesburg and Mexico stock exchanges.

“Delta Corporation has been an associate of SABMiller and will become an associate of the new enlarged entity. We do not anticipate any material changes to the current relationship between Delta and the combined group following the completion of AB InBev’s recommended combination with SABMiIler,” said Delta in a statement.

The deal gives AB InBev a footprint in Zimbabwe and expands its reach into the rest of Africa, which is expected to see a sharp increase in the legal drinking age population as well as increased beer consumption among its fast-growing middle class.

Locally, Delta comprises of the wholly owned Kwekwe Maltings, Schweppes Zimbabwe and Food and Industrial Processors in which it holds a 49 percent shareholding as well as African Distillers (31 percent) and Nampak Zimbabwe (21,4 percent).

It is the largest company on the Zimbabwe Stock Exchange, with a market valuation of $746.59 million, more than a quarter of the total ZSE valuation.

Its shares closed unchanged at 60 cents on Wednesday after trades valued at $470 800.- The Source

(48 VIEWS)

This post was last modified on %s = human-readable time difference 9:39 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024