Dutch brewing company Heineken is planning to fully acquire United Breweries (UB), an India-based conglomerate with a major focus on the brewery (beer) and alcoholic beverages industry, for undisclosed amount.
The Dutch brewer currently owns 42.07% stake in United Breweries, and is seeking to acquire more than 50% interest.
Sources familiar with the matter were quoted by Reuters as saying that the company expects to acquire the stake in phases over the next few years.
However, UB Group spokesman said that no discussions have been held for the potential sale of stake in the company.
One of the sources was quoted as saying: "UB will need to make huge investments over the next few years on distribution network as well as new products.
"Heineken, as a majority owner of the company, is in a better position to do that."
In January 2008, Heineken indirectly acquired a 37.5% stake in UB through the acquisition of Scottish & Newcastle. The company raised its stake subsequently by purchasing shares in the open market.
In addition to Kingfisher beer, UB produces and sells 14 other brands, including London Pilsner.
