Heineken's joint takeover of Scottish & Newcastle could put the Dutch group in a position to try to take over the British brewer's fast-growing Indian partner, United Breweries [Get Quote], which is controlled by Indian billionaire Vijay Mallya, writes Joe Leahy in Mumbai.

Heineken will gain S&N's 37.5 per cent stake in United, which, under Indian company law, could trigger an open offer for a further 20 per cent stake in the $1.7bn (858m pounds) Indian group.

Such a move would probably be opposed by Mr Mallya, who also holds 37.5 per cent in United, a flagship holding and cash cow for his conglomerate, which also includes one of India's biggest airlines.

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S&N's United stake is a jewel in its crown -- the Indian group reported sales of Rs 9.76bn (125m pounds) in the nine months ended December, nearly a third higher than a year earlier.

India's emerging consumer classes are drinking more beer and spirits, and Mr Mallya's Kingfisher beer is one of the foremost brands in the country.

Mr Mallya said on Friday he welcomed Heineken as a "potential shareholder" of United, adding, however, that the terms of the new partnership "are yet to be discussed and agreed".

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