just On Call: Heineken happy with JVs, would buy out if offered - CFO

Heineken has reiterated its satisfaction with its JV partnerships around the world, but admitted that it would be prepared to buy out its partners if they wanted to sell.

Reports out of India earlier this week suggested that the country's UB Group is mulling the divestment of a further 10% to 12% of United Breweries to Heineken. The Netherlands-headquartered brewer inherited a 37.5% holding in United Breweries when it acquired Scottish & Newcastle in 2008.

Heineken also has a major stake in Chile's Compañía Cervecerías Unidas, jointly accounting for 66.1% ownership with the Luksic family's Quiñenco holding company.

When asked about the JVs today (23 October), Heineken's CFO, Rene Hooft Graafland, said that the brewer is satisfied with the current ownership structures. “We are happy with these partnerships,” he said in a conference call. “All our partners know that, if they would like to get out of the business, then we would be happy buyers of the business. But, that is not an ongoing discussion we have with them, because that is not how you build good partnerships.”

When pressed, Hooft Graafland declined to be drawn on the terms of its JVs, specifically regarding first refusal should a sale be offered. “I will not elaborate on what the agreements are between the parties,” he said, “but if they want to sell out we would be the logical buyer and they would come to us.”

Hooft Graafland was chairing a conference call to discuss Heineken's Q3 and YTD results, which were released this morning.