Heineken shareholders okay Scottish & Newcastle buy

By Foo Yun Chee

AMSTERDAM (Reuters) - Dutch brewer Heineken NV received shareholders' approval on Thursday to buy parts of rival Scottish & Newcastle in a deal that also includes Denmark's Carlsberg.

Heineken and Carlsberg, the world's fourth and fifth biggest brewers, agreed this year to buy S&N for 7.8 billion pounds ($15.39 billion) to carve up Britain's biggest brewer, whose products include Foster's, Kronenbourg and Newcastle Brown Ale.

Under the deal, Heineken will take over S&N's British business, which includes Strongbow cider and John Smith's beer, along with its operations in Belgium, Portugal, Ireland, the United States and India.

"This will give us leadership in markets and allow us to establish a beachhead in markets where we do not have a presence," Chief Executive Jean Francois van Boxmeer told shareholders before they voted unanimously to approve the deal.

The acquisition will boost Heineken's sales volumes by 27 million hectolitres of beer and cider and boost sales by about 3.5 billion euros. The company sees 162 million euros ($258.5 million) in synergies by the end of year four.

Carlsberg will acquire S&N's 50 percent stake in Russia-based Baltic Beverages Holding to get full control of the brewer of Baltika in the former Soviet Union, and also S&N's interests in France, Greece, China and Vietnam.

Heineken, famed for its eponymous lager and Amstel, said it was better able to ride out the effects of any recession than its competitors, thanks to its range of premium beers.

"Heineken is a premium beer, better able to face recession. Even where there is a recession, Heineken will be better able to face a recession than rivals," said van Boxmeer.