Approached by the competition, Heineken refused a proposal by SABMiller to purchase the company. The offer stated that Heineken would continue to operate independently of SABMiller, but Heineken rejected the offer, stating the proposal was “non-actionable.”
In a move speculators have been discussing, the brewers released a statement on Sunday in response to the topic, “The Heineken family has informed SABMiller, Heineken and Heineken Holding of its intention to preserve the heritage and identity of Heineken as an independent company. The family and Heineken management are confident that the company will continue to deliver growth and shareholder value.”
The De-Carvalho family, founders of Heineken, own a majority of the shares, and they want to keep the company independent of it’s competitors. The proposal followed a suspicious rumor that Anheuser-Busch InBev. had recently offered to merge with London based brewer SABMiller.
The maker of Budweiser, Corona, and Stella Artois, Anheauser-Busch InBev. is the largest brewer worldwide. If a merger with SABMiller had been successful, it would have given the beer giant a significant market gain in Africa, a region SABMiller has a good grip on already.
Other beers Heineken produces are the delicious Strongbow Apple cider, a personal summer favourite, and Sol. With the shares up a reported 21 percent this year alone, it’s easy to see why the De-Carvalho family isn’t quick to give up the reigns, or share in the wealth.
Currently ranked as the third-largest brewer behind SABMiller, in second, had the the acquisition gone through, it could have propelled Heineken into a strong position. One report suggested the SABMiller’s offer could have potentially made Heineken the larger share owner in the partnership.
The brewer of Miller, and also the world’s largest bottler of Coke, declined to comment on the current situation. Even with the spurned offer, they don’t expect to see sales slow down any time soon. The number two distributor of beer has sold approximately 21 billion liters all around the globe, and as for their financials? They’ve earned an estimated $27 billion in revenue.
(Photo courtesy of Aurimas)