By PETER EGWUATU
The Chairman of Consolidated Breweries, Prof. Mrs. Oyinade Odutola-Olurin has assured that the acquisition of DIL/Maltex and Benue Brewery by Consolidated Breweries Plc will not result in loss of jobs by the staff of the company and its two subsidiaries.
She further assured that all existing contracts of employment of all employees of Benue Brewery and DIL/Maltex shall be transferred to Consolidated Breweries and such employees shall become employees of the Enlarged Consolidated Breweries Plc, stress that where any employee of Benue Brewery or DIL/Maltex does not wish to continue in the employment of the Enlarged Consolidated Breweries, after the mergers, such employee would be entitled to obtain the full terminal benefits based on his or her existing contract of service.
‘’The mergers are not intended to jeopardize employment of any employee of Consolidated Breweries, Benue Brewery or DIL/Maltex ‘’, she said, adding that ‘’by creating a stronger, more efficient and more profitable organization, it is hoped that the mergers will create better opportunities for all employees of the post-merger entity’’.
Shareholders of Consolidated Breweries Plc gave their nod to the merger schemes with Benue Brewery Limited and DIL/Maltex Nigeria Plc with a view to improving operational efficiency, expand growth prospects and maximize value for all stakeholders.
The shareholders’ approval was obtained at a Court ordered extra-ordinary general meeting of Consolidated Breweries in Lagos on Thursday, where its chairman, Prof Mrs. Oyinade Odutola-Olurin disclosed that prior to the court-ordered meeting, DIL/Maltex and Benue Brewery were subsidiaries of Consolidated Breweries Plc and engaged in the same line of business as Consolidated Breweries. She however, added that Consolidated Breweries owned 97.83 per cent of the equity in DIL/Maltex and 100 per cent of the equity in Benue Brewery.
According to her, the primary objective of the mergers is to streamline the management, corporate governance and operations of Consolidated Breweries Plc and its subsidiaries. Prof Odutola-Olurin added that ‘’it’s envisaged that the mergers will lead to administrative efficiencies, cost reductions and operational synergies; and be beneficial to all stakeholders of Consolidated Breweries’’
She further explained that the post-merger entity would capture positive economies of scale and realize significant synergies through enhanced operational and administrative efficiencies, a streamlined supply chain, and a unified service delivery platform.
Speaking in the same vein, the Chairman of DIL/Maltex Nigeria Plc, Chief Samuel Bolarinde and his Benue Brewery counterpart, Steven Ameh, at separate meetings noted that the merger schemes would provide an opportunity for Consolidated Breweries to better utilize its assets and further streamline its operations.
The combination of the assets of Consolidated Breweries and DIL/Maltex and Benue Brewery, the duo pointed out, is expected to increase Consolidated Breweries’ manufacturing capacity while streamlining overlapping costs, resulting in increased earnings.
‘’Significant operational synergies will be generated from the optimization of key operations, particularly the manufacturing, overall management, administration and accounting functions’’, said Steven Ameh, stressing that the merger would therefore result in improved returns to the shareholders and employees while customers would also benefit from access to a wider operational platform.
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