Heineken to increase its stake in UBL

Heineken NV, a Dutch brewer is seeking to raise its stake in United Breweries Ltd (UBL), one of the largest brewers of India. The Dutch brewer, the single largest shareholder in UBL with a 42.07% stake, plans to take that holding beyond 50% by buying shares from liquor baron Vijay Mallya and his group firms, reported Reuters.

Heineken indirectly acquired a 37.5% stake in United Breweries following its takeover of Scottish and Newcastle in January, 2008. It subsequently raised the stake by buying shares in the open market. Mallya's business empire previously included India's largest spirits company United Spirits Ltd but he sold most of his shares in the company and gave management control to Britain's Diageo Plc in 2012.

“United Breweries will 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,” sources informed Reuters. Besides Kingfisher, United Breweries makes and sells 14 other brands including London Pilsner. Asia-Pacific, which accounts for almost a fifth of Heineken's operating profit, was the company's fastest growing market in the first half of this year.