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In the event of a successful offer for Scottish
Newcastle, Heineken's share of the assets
will be consolidated for the first time when the
deal becomes effective.
The intended acquisition of the assets of Scottish
Newcastle represents a significant strategic step
that will create strong platforms for future profit
and cash flow growth. It will enable the Company
to grow its flagship Heineken brand faster
in profitable markets and make the Heineken
Group the leading brewer in the highly profitable
European beer market. Following the transaction,
Heineken will hold 18 number 1 or 2 positions in
Europe. In Western Europe, where Heineken has
increased its profitability consistently, year after
year, Heineken will acquire number 1 and 2 market
positions in significant new profit pools.
The transaction will also add attractive brands with
international appeal such as Newcastle Brown Ale,
Foster's, John Smith's Bitter and Strongbow cider
to Heineken's leading brand portfolio. In addition,
Heineken will acquire a 37.5 per cent stake in
United Breweries, the leading brewer in the still
small but fast-growing Indian beer market.
On a pro-forma annual basis, this acquisition
would add over 27 million hectolitres and revenues
of approximately €3.6 billion to Heineken, thus
becoming twice as big as the second player in the
European market.
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