Accra, Dec. 18, GNA- President John Agyekum Kufuor on Thursday pledged government's support and encouragement to the proposed transactions between Guinness Ghana Limited (GGL) and Ghana Breweries Limited (GBL) to merge their operations in Ghana.
He said " it is a happy news. You have the encouragement of government. We assure you of that".
President Kufuor said this when a four-man delegation from the two companies paid a courtesy call on him at the Castle, Osu. Mr David Hampshire, Chairman of the Board of Directors of GGL and Managing Director of Diageo Africa who led the delegation briefed President Kufuor about the details of the proposed transactions.
President Kufuor said the merger between two of Ghana's major breweries coming after the heels of the merger between Ashanti Goldfields Company (AGC) and Anglogold in the mining sector, signified much confidence in the government's economic policies and programmes.
He expressed the hope that the consummation of the relationship would not only benefit Ghana but the West African Sub-Region. Mr Hampshire said the transactions were being undertaken in consultations with the Ghana Stock Exchange (GSE) to ensure that the local shareholders of both companies were actively involved and properly cared for.
Other members of the delegation were, Mr Tom Deman, African Director of Heineken, Mrs Pamela Djamson-Tettey, External Affairs Director of GGL and Mr Albert Don-Chebe, Corporate Affairs Manager of GBL.
The GSE on Thursday issued a statement that the Boards of Guinness Ghana Limited (GGL) and Ghana Breweries Limited (GBL) have entered into discussions with a view to merging their operations in Ghana. The proposed transactions were being undertaken with the consent of Diageo Plc majority shareholders of GGL and Heineken International BV majority shareholders of GBL.
It said discussions on the terms and structure of the proposed transaction were continuing.
The statement said the transaction was subject to corporate approvals as well as certain regulatory approvals including those from the GSE and the Securities and Exchange Commission (SEC).
