Scottish & Newcastle, the drinks group that sells Foster’s and Kronenbourg lager in Europe, announced it has agreed a $171m (£88m) deal to give it joint control in the largest brewer in India.

S&N is to take up to a 37.5% stake in United Breweries, which includes the leading Indian beer Kingfisher, and take joint management control with a group of shareholders led by United chairman Vijay Mallya.

S&N is understood to have beaten competition from InBev, the Belgian brewer, formerly known as Interbrew, before the deal with Mallya.

Joint venture Millenium Alcobev, owned by S&N and United Breweries, was set up in May 2003 and has since become India’s number three brewer.


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