The Competition Commission of India (CCI) has confirmed that it has approved Heineken International B.V’s proposed acquisition of an additional equity stake in United Breweries Ltd (UBL), as per a PTI report.
This, however, is subject to the outcome of certain court proceedings, a combination notice filed with CCI noted.
“The proposed transaction relates to HIBV’s potential acquisition of additional equity stake in UBL,” it said.
United Breweries is engaged in the manufacture, sale and distribution of beer in India. Heineken International B.V. (HIBV) is an investment holding company and is itself not engaged in any business activity. It is a direct and an indirect shareholder for all non-Dutch companies that form part of the Heineken Group, as per the notice.
In a tweet, the regulator said, “Commission approves proposed acquisition of additional equity stake in United Breweries Limited by Heineken International B.V.”
Heineken currently owns 46.69 per cent in UBL. Earlier in June, sources close to the Dutch major had indicated to media outlets that the company is expected to increase its stake in UBL initially to over 50 per cent and later in tranches as and when the shares by the lenders are released in the market. Vijay Mallya himself owns an 8.08 per cent in the company, 98.11 per cent of which is pledged with banks. The total shareholding of Mallya and his holdings is 11.04 per cent of which 95.21 per cent are pledged across several banks.
With the special PMLA (Prevention of Money Laundering Act) court restoring to lenders the properties and securities of the former liquor baron worth a total of Rs 5,650 crore, Heineken is expected to use the opportunity to increase its shareholding in UB, the sources had said.