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Heineken reshuffles its holdings

Heineken NV, Europe's largest brewer, said Monday it would book a euro145 million ($216 million) gain after moves to combine multiple operations in India and in the South Asian Pacific.

Singapore-based Asian Pacific Breweries, in which Heineken owns a controlling 42.5 percent stake, will sell its Indian operations to India's largest brewer, United Breweries Limited. Heineken and UBL have agreed on terms of brewing and distributing Heineken-branded beer in India.

"In the world of beer, there is no bigger or more exciting growth opportunity than India," said CEO of Dutch brewing company Heineken Jean-Francois van Boxmeer. He said he viewed the deal as a way of increasing Heineken's exposure to high growth developing markets.

Separately, Heineken said it will sell businesses it controls in Indonesia and New Caldonia to Asian Pacific Breweries.

According to Jean-Francois van Boxmeer, nearly a quarter of the beer market is expected to consolidate in the near future. Van Boxmeer said that he expected a quarter of the global beer market will be bought up by the world's top four brewers, Anheuser-Busch InBev, SABMiller Plc, Heineken and Carlsberg. For example, Mexico's No.2 brewer and bottler FEMSA has put its business up for sale, and the Financial Times reported last month that Heineken was in talks with the Mexican brewer.
"That is the game that is going on," Van Boxmeer said. "And we expect to participate."

Based on the following sources:

http://www.businessweek.com
http://www.topix.com
http://foodbizdaily.com
http://www.telegraph.co.uk