INDIA: United Breweries to swallow Scottish & Newcastle unit
United Breweries has announced that it will merge Scottish & Newcastle India Ltd into itself.
The Vijay Mallya-controlled Kingfisher brewer said yesterday (7 February) that its board has approved the deal. United Breweries will issue almost 8.5m shares at INR1 (US$0.02) each for every 32m shares of Scottish & Newcastle India, valued at INR10 each.
In 2008, Heineken acquired Scottish & Newcastle's India assets as part of it and Carlsberg's carve-up of the UK-based brewer. The deal gave Heineken a 37.5% stake in United Breweries, previously held by Scottish & Newcastle (S&N).
For several months, Heineken and United Breweries remained in talks over whether the former would be entitled to a degree of management control in the Indian brewer, as part of its stakeholding. In December 2009, the two reached a deal, with Heineken winning the right to appoint three United Breweries' board members, including the position of CFO.
There will be a lot of relieved beers being downed in Amsterdam tonight. And, while the folk at Heineken will be keen to hedge their bar spend, they'll still want to celebrate today's news....
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