Nigerian Breweries Plc has acquired Sona Systems Associates Business Management Limited and Life Breweries Company Limited.

Sona Systems has two breweries in Ota Ogun State and Kaduna, while Life Breweries is based in Onitsha, Anambra State.

According to Managing Director of Nigerian Breweries Plc Mr. Nicolaas Vervelde:

…alternative to acquiring the breweries to meeting growing demand, was building a new brewery, which he said, would have taken a period of not less than 24 months.
“The acquisition is therefore, a good business decision. Advantages of the Sona/Life breweries acquisition means immediate capacity to meet growing demands, expands our geographical coverage, reduces delivery cost and enhances economies of scale.

Good Move but,
This acquisition will surely strengthen and expand the operations of NB Plc. But looking it from consumers perspective, it may lead to some kind of monopoly in the breweries industry Sona and Life being among the major competitors to Nigerian Breweries. This leaves SABmiller and Guinness Nigeria Plc as the only major competitors to Nigerian Breweries.

Performance:
Nigerian Breweries posted a turnover of N185.862 billion for the year ended December 31, 2010, up from N164.206 billion in 2009. Profit before tax rose from N41.399 billion to N44.88 billion while profit after tax stood at N30.332 billion, compared with the N27.91 billion in 2009. Shareholders received a total dividend of N2.10 for the 2010 financial year.

Things are already looking up for the Nigerian Breweries going by its half year results ended June 30, 2011. The company reported a profit before tax of N27.6 billion up from N23.3 billion, while profit after tax stood at N18.7 billion compared with N15.9 billion posted in the corresponding period of 2010.

Nigerian Breweries shareholders will surely be smiling, these recent development will surely strengthen its market value. I believe it is a good time to buy in if you have not done so.

source: http://nairabrains.com/2011/10/nigerian-breweries-plc-purchase-of-life-and-sona-breweries-inside-story/