With the purchase of a majority stake in the Ecuadorian beer brewer Biela y Bebidas, Heineken cannot compete with competitor AB InBev in the South American country. Jefferies analysts say that Heineken now has a market share of around 0.2 percent in Ecuador, while AB InBev holds 96 percent of the market.

Heineken probably wants to use the Biela brewery to sell its portfolio of international premium beers in Ecuador. Perhaps the Dutch beer brewer Heineken also wants to brew in Ecuador, the market experts think. Although Heineken did not provide any financial details, the Jefferies analysts estimate that Heineken has paid more than 70 million euros for the interest.

Jefferies has a buy recommendation for Heineken. The share in the beer brewer closed on Thursday at 96.30 euros.

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