The Competition Commission of India (CCI) has cleared the proposed integration of Scottish & Newcastle India (SNIPL), owned by Heineken Group, with Vijay Mallya-led liquor business United Breweries (UBL).
After the merger, SNIPL, which holds 3.22% shares in UBL, will cease to exist and UBL will be the surviving entity.
At present, the Heineken Group and the UB Group separately hold 37.38% each in UBL, and the remaining 25.24% is held by others and SNIPL has no operations or activities and is merely holding 3.22% shares in UBL.
The aim of the proposed combination was to consolidate Heineken Group’s shareholding in UBL, which is expected to lead to consolidation of Heineken Group’s presence in India through a single entity.
The deal gave Heineken a 37.5% stake in UB, previously held by Scottish & Newcastle (S&N).