E-Malt.com News article: India: UB to Heineken, sort out competing issue with ABP

Faced with a clash of interest with Asia Pacific Breweries (APB) bringing competing products in Indian market, UB Group is pressing for resolution of the issue with Dutch-based Heineken NV, which is the single largest shareholder in both companies, Business Standard reported June 17.

"The competition position with Asia Pacific Breweries does need resolution and this will also be on the agenda for discussion (with Heineken)," UB Group Chief Financial Officer Nedungadi told PTI.

When asked if there is any possibility that UB may work out a deal under which both companies can do business in India, Nedungadi said, "It is important for both sides to agree on the best way to address the Indian market effectively with all the brands owned and controlled by both corporations."

Heineken officials confirmed that the two groups were in talks to sort out the issue.

"Presently, we are talking to both, our joint venture in India (APB) and also to UB Group to find a satisfactory solutions for future operations in India," a Heineken NV spokesperson said but declined to give further details.

UB has been objecting to Singapore-based APB — a joint-venture between Heineken and Fraser & Neave — recently launching its flagship 'Tiger' beer in India, which competes directly with UB's 'Kingfisher'.

Heineken holds 37.5 per cent stake in United Breweries, following the acquisition of Scottish & Newcastle (S&N) for $ 7.8 billion company is also the largest shareholder in ABP with 42.5 per cent stake.

On reports about a possible sale of stake in the United Breweries by the UB Group, Nedungadi said "there has not been any talk of stake sale by either side".


17 June, 2008