India's UB, Heineken discuss new accord post S&N

By Rina Chandran

MUMBAI, May 9 (Reuters) - India's top beer maker, United Breweries Ltd (UBBW.BO: Quote, Profile, Research), hopes to draw up a new joint venture agreement with Heineken (HEIN.AS: Quote, Profile, Research), a company official said, to protect its position in an increasingly competitive market.

The Dutch brewer acquired 37.5 percent of United Breweries, which makas Kingfisher beer, following a 7.8 billion pound ($15 billion) takeover with Carlsberg (CARLb.CO: Quote, Profile, Research) of the Indian brewer's erstwhile partner, Scottish & Newcastle (S&N).

Under the purchase agreement, Heineken took over S&N's operations in Britain, Finland and Portugal as well as India.

But Heineken, in a joint venture with Fraser & Neave (FRNM.SI: Quote, Profile, Research), also has a stake in Singapore's Asia Pacific Breweries (APBB.SI: Quote, Profile, Research), which is stepping up its presence in India and whose flagship is Tiger beer.

"We view APBB as competition, and according to the conditions of our agreement with S&N, that is not acceptable," UB Group Chief Financial Officer Ravi Nedungadi said on Friday.

UB Group, which also has 37.5 percent ofà