Anheuser-Busch InBev (AB InBev), the world’s largest brewer took steps on Tuesday to consolidate its operations in Nigeria.  International Breweries Plc, a subsidiary of the Belgian brewer announced on Tuesday that the Board of Directors of the three independently operated breweries controlled by AB InBev, namely International Breweries Plc, Intafact Beverages Limited and Pabod Breweries Limited have agreed to explore a merger of their operations subject to regulatory and shareholder approvals.

According to a statement released by International Breweries Plc, the proposed merger was considered and approved by its board in a meeting on 2nd June 2017, and is expected to benefit all stakeholders, particularly shareholders in the form of increased revenue and cost synergies, enhanced operational efficiencies, better resource management and more streamlined operations.

The statement further said that the merger is subject to regulatory approvals from the Nigerian Stock Exchange (NSE), the Securities and Exchange Commission (SEC) and shareholders of the respective companies. All three companies, which are indirect subsidiaries of Anheuser-Busch InBev SA/NV, will continue to operate as separate entities until the regulatory and shareholder approvals are received.

International Breweries Plc is a public limited liability company based in Ilesha, Osun State. It was incorporated in 1971 and listed on the Nigerian Stock Exchange in 1995. The brewer is best known for its Trophy Lager beer and other non-alcoholic beverages.

Intafact Beverages Limited is a private limited liability company incorporated in February 2007 in Onitsha, Anambra State. The brewery was built by SABMiller, the former owners in 2011 and is best known for its Hero Lager beer, among others.

Pabod Breweries Limited is also a private limited liability company incorporated in 1978. The brewery which is located in Oginigba, Port Harcourt, Rivers State produces Grand Lager beer, Grand Malt, among others.