AB InBev’s Brazilian unit will spend $926.5 million to increase its share in Cervecería Nacional Dominicana (CND) by 30%.
AmBev’s stake in the Dominican brewer will increase from 55% to 85% after a deal was reached with its partner in the venture, E. León Jimenes.
It is estimated that the deal will be completed in early 2018. Franklin León will remain president of CND, and E. León Jimenes will keep its position on the board of directors.
Franklin León, president of Cervecería Nacional Dominicana, said: “At Cervecería Nacional Dominicana, we highly appreciate the expansion of the agreement as it will enable CND to continue strengthening its regional leadership and reinforce its strategy of expanding the distribution of our leading brand, Cerveza Presidente, to other markets.”
Fernando Arturo León, president of the board of directors of E. León Jimenes, said: “This alliance is the product of a common vision to create value for Cervecería Nacional Dominicana through good practices and corporate governance, while helping the development of our society.”
AmBev CEO Bernado Paiva added: “We are pleased with the extension of the corporate agreement with E. León Jimenes, the result of an excellent relationship that reinforces our commitment to the Dominican Republic. Together we have achieved a model of society that shares the same dream of continuing to build a better world, creating opportunities for our people and all Dominicans.”
Last year AmBev acquired Brazilian fruit juice brand Do Bem is it aimed to boost its non-alcoholic beverages portfolio and reach a new base of consumers.
The alliance between AB InBev and E. León Jimenes was signed in 2012. CND owns brands such as Presidente, Bohemia Especial and Ambar.
© FoodBev Media Ltd 2019