(Updates with Heineken statement)
JOHANNESBURG, May 18 (Reuters) - Heineken NV
confirmed on Tuesday that it was in talks with South Africa's
Distell about a possible acquisition, in what would
mark a push into wine and spirits for the world's second-largest
brewer.
Distell, whose market capitalisation was 31.8 billion rand
($2.27 billion) at the close on Monday, said in a statement it
had been approached by Heineken regarding a potential
acquisition of the majority of its business.
Distell is also the world's second-largest cider maker, a
business in which Heineken is heavily involved, chiefly through
its Strongbow brand. Distell also makes wines and spirits,
including Amarula and Two Oceans wines. Heineken already sells
beer in South Africa.
Both companies said that discussions were ongoing and there
was no certainty an agreement would be reached.
An acquisition would be the first for Heineken chief
executive Dolf van den Brink, who took charge at the Dutch
brewer last June and has launched a plan to restore profit
margins, partly through cutting 8,000 jobs.
Distell shares jumped by as much as 10.4% in early trading
on Tuesday to a four-year high of 158.00 rand. At 0745 GMT, they
were up 4.5% at 149.54 rand.
($1 = 14.0305 rand)
(Reporting by Nqobile Dludla in Johannesburg and Philip
Blenkinsop in Brussels, editing by Louise Heavens)