In a move that could change the sweepstakes in the Indian beer market, brewing giant SABMiller plans to acquire rival Scottish & Newcastle in a $12.8 billion deal, the Sunday Express said on Sunday.
Scottish & Newcastle is a partner of Vijay Mallya's United Breweries Group in India. The two have formed an equal joint venture, McDowell Alcobev Pvt Ltd, which has in its stable brands like Sand Piper Lager, Zingaro Strong Beer and Kalyani Black Label Strong.
UB Group CFO Ravi Nedungadi said he expected more companies to join the race for Scottish & Newcastle as SABMiller could face regulatory hurdles.
In the last few years, SABMiller has emerged the main challenger to the UB Group's dominance of the Indian beer market by effecting a series of high-profile acquisitions. After acquiring the brewery business of Shaw Wallace & Co from the Chhabria family, it acquired Foster's business and brand in India for a consideration of $120 million.