Dashen Brewery, Ethiopia is set to construct a second plant in the town of Debre Birhan in the Amhara Regional State.
The request to construct a brewery is said to have been approved by the city administration according to a source.
The city has selected two potential areas for the proposed investment and is waiting on final approval from the regional administration said Getaneh Zike, Mayor of Debre Birhan.
Dashen plans to plant its second brewery in this area because the area has a potentially significant beer market.
Debre Birhan enables Dashen to reach the central parts of the country at some distance from its current brewery in Gonder.
The area is also well known for considerable barley production and abundant water resources.
It is to be remembered that British consortium Duet Group is negotiating for shares in Dashen Brewery. The brewery is in the early stages of discussions according to Tadesse Kassa (Tinkishu) board chair of Dashen.
Dashen and the Duet Group had earlier partnered on a failed bid to acquire Meta Abo Brewery. Duet would have acquired a 51% share in Dashen if the 173 million US dollar offer for Meta had been successful.
The two companies continued discussions with representatives of the British asset manager visiting the Dashen brewery several times according to sources.
Duet representatives also held talks with the board and management of the brewery in regards to percentage of shares and payment explain the sources.
It is expected that Duet will acquire a 40% stake in Dashen worth 60 million US dollars according to a draft agreement resulting from the negotiations said sources. [ Capital ]