Heineken: takes over of UBL in India

(CercleFinance.com) - Heineken has announced that it has taken over United Breweries Limited (UBL) at the end of its general meeting on 29 July, increasing its stake in the Indian brewer - which operates the Kingfisher brand - from 46.
5% to 61.5%.

The company said that India offers an exciting long-term growth opportunity with its low per capita beer consumption of two litres per year and its strong emerging middle class, thereby enabling upscaling.

The Dutch brewer expects UBL's consolidation to have slightly accretive effect on its EPS excluding non-recurrent items, although will have a dilutive effect on its operating profit margin excluding non-recurrent items.

Despite this deal, the beer is pretty flat on Friday afternoon - down over 1.5% just over one hour before the market closes.


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