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Dutch brewing giant Heineken has written down its SA business by €491 million (R10 billion), or 16%, under pressure from rising interest rates and volume declines that have forced it to pick up its promotional activity.
The world's second-largest brewer only completed its tie-up of its local operations with Distell in April 2023, saying on Wednesday the lower current valuation of the business, relative to the time of the announcement of the acquisition in November 2021, predominantly reflects the increase in the weighted average cost of capital.
"Inflationary pressures and higher brand support levels to address a more challenging competitive environment also played a part," it added.
