United Breweries, Heineken may form Indian venture

NEW DELHI, May 28 (Asia Pulse) – Vijay Mallya-led United
Breweries (UB) and Dutch beer maker Heineken could
come together in the Indian market, following the exit of
Jaipuria from Asia Pacific Breweries-Pearl.

“Talks between both companies (UB Group and Heineken) are in
the advance stages and soon both will announce the deal,” a
source familiar with the development said.

The two firms are looking at floating either a special
purpose vehicle or a joint venture and bring together their
distribution businesses under a single entity, the sources
said.

The two firms had been locked in conflict of interest battle
after Heineken, in collaboration with Danish brewing major
Carlsberg, acquired UK-based Scottish & Newcastle (S&N), which
had around a 37 per cent stake in United Breweries.

Heineken’s interest in APB-Pearl — a joint venture between
its Singapore-based subsidiary Asia Pacific Breweries (APB) and
Jaipuria Beverages & Food Industries — had proved to be a
roadblock with UB objecting on the ground of conflict of
business interest.

UNITED BREWERIES, HEINEKEN MAY FORM INDIA-BASED JOINT VENTURE

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With ABP acquiring the entire 33 per cent stake of Jai