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Our Bureau

Bangalore, May 8 Beer major Heineken does not have to float an open offer to the Indian public after taking over 37.5 per cent stake of Scottish & Newcastle in United Breweries.

An official with the UB Group told Business Line that as the takeover of Scottish & Newcastle by Carlsberg and Heineken took place through a scheme of arrangement as per the court orders in the UK, it does not trigger an open offer. The takeover of Scottish & Newcastle has also apparently been cleared by the European Union.

In another development, the UB Group President and Chief Financial Officer, Mr Ravi Nedungadi, said that as soon as Carlsberg and Heineken took over Scottish & Newcastle, the terms of agreement between S&N and United Breweries stood cancelled. “Hence, there was no need to restrain the new owners from invoking any of the rights from the earlier agreement,” Mr Nedungadi said.

United Breweries had filed an application in the Bombay High Court in March as part of its rights issue in which it gave details of the negotiations with Heineken and other financial information. Mr Nedungadi said the UB Group was in discussion with Heineken on several issues regarding its operations in India. “The discussions have so far been extremely cordial,” Mr Nedungadi said.

Heineken holds 42.5 per cent in Singapore-based Asia Pacific Brewers, which also manufactures and markets its beer in India. United Breweries believes that Heineken should resolve the issue of having two entities in India, which will pave the way for it to have to smoother operations in the country.

More Stories on : Mergers & Acquisitions | Open Offers | Breweries

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