'Upside in Heineken brand sale will accrue to UB'

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS United Breweries, Heineken ink deal for India plans UB-Heineken alliance: An analysis UB to get licence of Heineken brands

Heineken and United Breweries have finally settled their differences. The former will acquire APB India, and transfer it to UB next year.

Commenting on this development, Ravi Nedungadi, Chief Financial Officer and President-Finance, UB Holdings says the upsides in the business including in the sale or distribution of Heineken's brands will accrue to United Breweries and in that Heineken is a 37.5% shareholder.

Here is a verbatim transcript of Ravi Nedungadi's comments on CNBC-TV18. Also watch the accompanying video.

If you scan the worldwide arrangements that the Heineken has it is such a prestigious brand to have. It certainly fulfills the need for most companies to have the gold standard international beer offering in their portfolio. They have a very standard licensing agreement across the world and I do not think that anywhere there is a prospect of the local company paying Heineken or getting paid by Heineken. For that you share the upsides of the distribution in both the companies.

I do not want to go into the detail because of confidentiality in the agreement but the idea is that the upsides in the business including in the sale or distribution of Heineken's brands will accrue to United Breweries and in that Heineken is a 37.5% shareholder. So just like any other shareholder they would get an equitable share of that profit.