Event Update - United Breweries - ICICI Direct

CCI has imposed a penalty of Rs. 752 crore on UBL besides imposing penalties on certain individuals

In culmination of an investigation into alleged Cartel behavior (period spanning 2009-18), Competition Commission of India has penalized UBL, Carlsberg (Rs. 121 cr) and AIBA (Rs. 6 lakh), while providing respite to AB-InBev. The commission has held two former MDs, Chief Sales Officer and Head of Strategic Planning and Analytics of UBL liable for anticompetitive conduct.

Impact: CCI has directed UBL to deposit the said amount within 60 days of the receipt of present order

UBL and the beer industry in general, has been facing unfavourable macro-climate since 3 years (Q1 disruption). With still stressed beer sales, UBL would have to shore up further debt (Rs. 115 cr LTD in FY21) to deposit the penalty. The scenario if undertaken, is expected to create near and medium term challenges for the company. UBL can however, appeal to the Supreme Court of India within 60 days from the date of communication of CCI decision.

For details, click on the link below: Link to the report

Shares of United Breweries Ltd. was last trading in BSE at Rs. 1564.9 as compared to the previous close of Rs. 1555.85. The total number of shares traded during the day was 34302 in over 1916 trades.

The stock hit an intraday high of Rs. 1579.45 and intraday low of 1546.65. The net turnover during the day was Rs. 53593023.

Source : Equity Bulls

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