By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Nigerian Breweries Plc on Friday said it’s seeking Securities & Exchange Commission’s (SEC’s) approval on its proposed scheme of merger with Consolidated Breweries Plc.

The beer maker in a letter signed by Uaboi G. Agbebaku, company secretary/legal adviser with reference number CS/LA.105/14/201 dated May 09, 2014 to the Nigerian stock exchange (NSE) and made available to InvestAdvocate said that the board of directors (BODs) of both companies have agreed to explore a combination of the two (2) businesses by way of a scheme of merger.

‘’As a result, a pre- merger application has today, 9thMay, 2014, been filed with the Securities & Exchange Commission for its approval,’’ the letter said.

According to Nigerian Breweries, on receipt of the said approval, both parties will take further steps to consummate the proposed merger including obtaining the approval of their respective shareholders to the scheme of merger at separate court-ordered meetings. ‘’The terms and conditions of the proposed merger will be contained in the scheme of merger document to be prepared and sent to all shareholders,’’ the beer maker said.

Both companies are subsidiaries of Heineken NV. While the parent company holds approximately 54.1 percent (54.1%) of the shares in Nigerian Breweries, it holds 53.8% of the shares in Consolidated Breweries.

Earlier in September 2011, Nigerian Breweries announced its acquisition of Sona Breweries and Life Breweries Company Limited in one of the biggest brewery acquisitions in Africa.