- Nigerian Breweries takes full ownership of Heineken’s subsidiary
Dangote Refinery has decided to cease selling petroleum products in naira following the breakdown of negotiations with the Nigerian National Petroleum Company Limited over a crude oil supply agreement.
This move signals that the refinery will not be supplying petroleum products to the Nigerian market, as it currently procures crude oil in dollars from the international market.
Without a viable naira-based crude supply arrangement, the company has opted to align its pricing model with global market standards.
The refinery’s management disclosed this decision in a statement released on Wednesday, highlighting the challenges of securing crude oil domestically under favourable terms.
“We wish to inform you that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira “This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.
“To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency,” Dangote Refinery management said.
The refinery also dismissed allegations that it had halted loading operations due to a ticketing fraud incident, describing the claim as baseless and deliberately misleading.
“Our attention has also been drawn to reports on the internet claiming that we are stopping loading due to an incident of ticketing fraud. This is malicious falsehood. Our systems are robust and we have had no fraud issues.
“We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of Naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in Naira.
“We appreciate your understanding and cooperation during this period,” the refinery said.
Nigerian Breweries takes full ownership of Heineken’s subsidiary
Also, the Nigerian Breweries Plc has completed the acquisition of the remaining 20 percent stake in Distell Wines and Spirits Nigeria Limited.
Distell Nigeria is a subsidiary of Distell International Limited — a company 100 percent owned by Heineken Beverages.
In a statement signed on Wednesday by the company secretary, Uaboi Agbebaku, Nigerian Breweries said the acquisition followed a sale and purchase agreement with Ekulo International Limited and Next International Nigeria Limited, the minority shareholders, who each held a 10 percent stake in DWSN.
“Nigerian Breweries Plc (“NB”) hereby notifies the Nigerian Exchange Limited (“NGX”), its shareholders, and the investing public that it has acquired the remaining 20% shareholding in Distell Wines and Spirits Nigeria Limited (“DWSN”),” the statement reads.
“The full acquisition follows the execution of a sale and purchase agreement with the DWSN minority shareholders, Ekulo International Limited and Next International Nigeria Limited, which each held a 10% stake in the company.
“The full acquisition will help to reduce complexities and make decision-making faster in the NB’s ambition to expand beyond beer. NB had previously, in June 2024, completed the acquisition of the 80% majority stake in DWSN.”
The company said to expand production capacity for DWSN brands, its manufacturing operations have been relocated from its rented facility to Nigerian Breweries’ premises.
Nigerian Breweries said the move will equally allow DWSN to benefit from economies of scale available at the company’s premises and help to grow its share in the wines, spirits and ready-to-drink (RTD) categories.
“Key wine and RTD brands produced locally by DWSN include Chamdor, 4th Street, Hunters Dry and Savanna. NB’s imported wines and spirits brands include Amarula Cream Liqueur, Drosty Hoff and Nederburg wines, and Bain’s whisky,” Nigerian Breweries added.
On June 2, 2024, the company announced that it had successfully completed the acquisition of an 80 percent majority stake in Distell Nigeria.
Nigerian Breweries said the transaction was finalised following approval from the South African Reserve Bank.