New Delhi: Vijay Mallya-led United Breweries
on Monday scored a tactical win over Heineken, with the Dutch beer
major saying that it would acquire the contentious Asia
Pacific Breweries (India) and merge it with the Indian giant.
As a result, UB group, which wanted Heineken to operate in
India only through it and severe its partnership with APB,
alone would be able to produce and market the popular global
beer in the country.
"As part of the new agreement, Heineken will acquire Asia
Pacific Breweries (APB) India and its subsequent transaction
intends to transfer this to UBL during 2010," Heineken said in
a statement.
Earlier, UB Group said it has reached an agreement with
Heineken, whereby the Dutch firm will operate in India only
through UBL.
Heineken, along with beer major Carlsberg, acquired UK-
based Scottish & Newcastle (S&N), which had around a 37 per
cent stake in UBL. As a fallout of which the stake in UBL was
transferred to Hieneken.
However, UBL didn't allow the Dutch firm to nominate
members on its board as Heineken also had a stake in APB
India, a joint venture with Jaipuria which was directly
competing with UBL.
Under the terms of agreement, Hieneken has the right to
nominate three members of the UBL board including the
executive position of Chief Financial officer.
Later, Jaipuria exited the joint venture by selling their
stake which cleared the path for UBL and Heineken to enter
into an agreement.
"Heineken and UBL have agreed to the key terms for the
brewing and distribution of the Heineken brand in India. This
will accelerate the development of the Heineken brand
throughout Inda," the Dutch firm said.
Following the UBL board meeting which took place today,
Heineken's nominee Guido de Boer was appointed as CFO while
Heineken board member Messrs Rene Hooft Messrs Rene Hooft and
Regional President Asia Pacific Siep Hiemstra were appointed
as non-executive directors, the company said.
"In the world of beers, there is no bigger or more
exciting growth opportunity than India... We are therefore
extremely proud to announce our partnership with UBL, the
strong market leader," Heineken Chairman and CEO Jean-Francois
van Boxmeer was quoted as saying in the statement.
Mallya and Boxmeer are slated to jointly address the
media later today.
In 2008, Heineken, in collaboration with Danish brewing
major Carlsberg, had acquired UK-based Scottish & Newcastle
(S&N).
PTI
First Published: Monday, December 07, 2009, 18:26