Zimbabwe & Zambia: Delta Corp to buy controlling stake in AB InBev’s National Breweries

Delta Corp Ltd., Zimbabwe’s biggest company by market value, agreed to buy a controlling stake in a Zambian sorghum-beer maker in the brewer’s first foray outside its home market, Bloomberg reported on October 13.

The purchase of National Breweries Plc will increase the Harare-based company’s exposure to the plant-based alcoholic drink, Delta said in a statement on October 13. The shares will be bought from Heinrich’s Syndicate Ltd., which is also a unit of the world’s largest brewer, Anheuser-Busch InBev SA/NV.

“This investment opportunity fits well with the company’s multi-beverage strategy,” Delta said, without putting a value on the transaction.

The expansion into neighbouring Zambia will help Delta battle weak economic growth and a cash crunch in its home market, although on Wednesday the company reported a pickup in lager sales due to improved disposable incomes. The brewer reports official half-year results on Nov 9.

Delta said in a trading statement this week its second-quarter revenue rose 1 percent and for the first half of the year it was up 2 percent.

13 October, 2017