Heineken N.V. is to acquire the Rechitsa brewery, strengthening Heineken's number two position in the fast growing Belarus market giving the company a production share of 24%. In 2007, Rechitsa sold 285,000 hectolitres, equating to a national production share of 8%.

Nico Nusmeier, Regional President Central and Eastern Europe, Heineken N.V. commented: "Following the acquisition of Syabar in December 2007, this transaction underlines our confidence in the potential of the Belarus beer market. The combination of Syabar and Rechitsa will give us a complementary brand portfolio, a leading position in South Eastern Belarus and a strong platform on which to grow our Russian brands, the fastest growing segment in this region".

Under the terms of the transaction, Heineken has agreed to invest €6.4 million in an increase in the share capital of Rechitsa, ultimately leading to a 51% share in the company. The brewery, has a technical capacity of 525,000 hectolitres, employs 588 staff and is located in Rechitsa, 280 km from Minsk. The business also operates a maltery, with a capacity of 10,000 tons. The portfolio consists of the mainstream beer brand Rechitsa and its 6 sub brands, the economy brand Dneprovska and a newly launched premium brand, BergG.

The proposed acquisition is subject to regulatory approvals.