DUTCH beer group Heineken will link with major Indian brand Kingfisher in a bid to increase its presence in one of the world's fastest growing beer markets.
Heineken said on yesterday it had agreed to form a shareholders' partnership with Vijay Mallya and his United Breweries Ltd (UBL), the Kingfisher maker, to distribute Heineken beer "in one of the world's fastest growing and most exciting beer markets".
The deal was accompanied by an announcement that Heineken was to buy Asia Pacific Breweries Ltd (APB), a successful joint venture with Fraser and Neave Ltd.
This transaction would be achieved by transferring Heineken's controlling interest in PT Multi Bintang Indonesia (MBI) and Grande Brasserie de Nouvelle-Caledonie SA (GBNC).
"This will create a more profitable business and a stronger platform for growth in South East Asia and the Pacific Islands," the company said.
Subsequently, Heineken would transfer the APB entity to UBL.
"As a result of the transactions, an exceptional book gain of 145 million euros (($A236.3 million) before tax will be realised in 2010. Consolidated net debt is expected to be reduced by approximately 175 million euros," Heineken said.
Heineken chairman and chief executive Jean-Francois van Boxmeer said: "In the world of beer, there is no bigger or more exciting growth opportunity than India.
"We have long regarded a strong Indian presence as important in order to increase our exposure to and growth from developing markets."
