Scottish and Newcastle: a strategic acquisition
The second half of 2007 was dominated by our planned acquisition of Scottish and Newcastle plc., in combination with Carlsberg. This strategic acquisition, which is still subject to approval of the relevant authorities, will reinforce our position in Europe, and will drive a sizeable, reliable cash flow and profit stream to support future expansion and increased shareholder returns. In particular, we will have an important new distribution platform in the UK and other markets to drive growth of the Heineken brand.
Our acquisition strategy is focused on building leadership positions in markets where we operate. Scottish & Newcastle UK is the leading brewer and cider producer. Hartwall in Finland, Centralcer in Portugal and Alken-Maes in Belgium command respectable number two positions in their respective countries. We will also reinforce our business platforms in both Ireland and the USA. Last but not least the significant stake in India’s leading brewer UBL will open tremendous opportunities for the future.
Alongside this, we will acquire some very strong, complementary brands such as Newcastle Brown Ale, Foster’s and Strongbow cider, all of which have international appeal and potential.
Once the transaction is complete, I look forward to welcoming all our new employees, business partners and customers to Heineken. These are exciting times for all of us and we will continue to build on the superb heritage and sterling past performance of Scottish & Newcastle.