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UB to get licence of Heineken brands
Addressing analysts on a conference call, Heineken management says United Breweries will not receive any cash. "It will only get a license of Heineken brands and ABP's Indian assets."
Heineken and United Breweries have finally settled their differences. The former will acquire APB India, and transfer it to UB next year.
Liquor baron Vijay Mallya said in an interview to CNBC-TV18 that Heineken will be active in India solely via United Breweries. "Heineken is among the most respected and recognized names among beers all over the world. The combination should help United Breweries to further its leadership position in the years to come," he added.
Heineken and United Breweries had resolved all issues regarding inheritance rights, Mallya said. "Heineken will have two directors on the board of UBL and will appoint a CFO for the company," he said. "UBL will brew and market the Heineken brand in India." The UB management would also take a call on the Tiger brand.
Heineken, on its part, would market the Kingfisher brand worldwide, Mallya said. He, however, did not give a timeline for a Heineken's rollout in India. Addressing analysts on a conference call earlier in the day, Heineken management had said that United Breweries would not receive any cash, "It will only get a license of Heineken brands and ABP's Indian assets." Mallya also did not comment on the royalty terms with Heineken.
Heineken is currently sold in India via duty-free market. At the conference call, Heineken said it had a lot of synergies with the Kingfisher brand. "We will buy two operations of APB and integrate it with UBL," Heineken said.
Speaking on the rationale for this deal, Heineken said buying APB stake and giving it to UB was an easier option.
