UB to merge Millennium Alcobev with itself

The company’s board of directors have approved merger of Millennium Alcobev and its subsidiaries with itself, United Breweries said.

Heineken will make APB India a wholly owned subsidiary by paying 25 million euros to its JV partner. The Dutch company will then transfer this asset, which has brewery each in Maharashtra and Andhra Pradesh, to UB in 2010.

The merger will be effective April 1, 2010, subject to the requisite approvals from the relevant statutory authorities and stakeholders, UBL said. “The combined entity will create significant value for all the shareholders and will help in optimising revenue, cost and capital synergies,” UB Group Chairman Vijay Mallya said.

Meanwhile, United Spirits, said it has inked a deal to acquire a 54.69 per cent stake in Pioneer Distilleries Ltd for Rs 73.95 crore. The company has entered into share purchase agreement with existing promoters of alcohol manufacturer PDL to buy 73.22 lakh shares, representing a 54.69 per cent stake in the company.

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