BELARUS NEWS AND ANALYSIS

DATE:

28/12/2007

Heineken buys Belarus brewer Syabar

AMSTERDAM (Reuters) - Dutch brewer Heineken NV (HEIN.AS: Quote, Profile, Research) said on Friday it has bought Belarus brewer Syabar Brewing Company, and the acquisition will be earnings enhancing from 2008 and value enhancing from 2012.

Heineken said in a statement that it has bought the Cypriot holding company of Syabar and it will fund the deal from existing cash resources. It did not disclose financial details.

The acquisition is part of Heineken's strategy to obtain leading market positions and would offer the possibility to sell both Heineken brands as well as Heineken's imported Russian brands, the brewer said.

Heineken, which wants to buy Britain's biggest brewer Scottish & Newcastle (SCTN.L: Quote, Profile, Research) together with Danish Carlsberg (CARLb.CO: Quote, Profile, Research), said it estimated that Syabar 2007 sales will be 600,000 hectoliters.

Syabar holds the number two position in a market that is showing double-digit growth and where annual consumption is estimated at almost 4.5 million hectoliters, Heineken said.

The Dutch brewer said it will buy the Cypriot holding company from a consortium led by Detroit Investments Limited (Cyprus) and from the International Finance Corporation, an affiliate of the World Bank.

(Reporting by Gilbert Kreijger; Editing by Rory Channing)

Source:

http://www.reuters.com/article/innovationNews/idUSL2825945020071228