Brewer Heineken announced on Thursday that it is willing to pay €176m to take over the drinks division of Swiss rival Eichhof, reports ANP news service.

The deal will give Heineken a 23% of the Swiss beer market, the company said.
The Eichhof beer brand has 10% of the Swiss market and sold 361,000 hectolitres last year.
Heineken is expected to make a formal offer for the Eichhof drinks division on May 7 and hopes to complete the transaction by the third quarter, says ANP. Heineken will pay for the acquisition from existing credit and expects the new activities to contribute to profit from 2009.
The takeover still needs approval from Eichhof’s shareholders who are expected to vote on the issue on June 18.
Eichhof’s brewery in Lucerne employs around 450 people. Heineken already has a brewert in Chur, Switzerland.