UB shares tank 3% as company slapped with hefty fine over beer cartelisation

NEW DELHI: Shares of United Breweries slumped over 3% on the National Stock Exchange on Monday after the Competition Commission slapped a hefty fine on it and a few others for cartelisation in the supply and sale of beer.

On Friday, the anti-trust body imposed fines of over Rs 873 crore on United Breweries, All India Brewer’s Association, Carlsberg India and 11 individual entities.

Shares of United Breweries were last down Rs 50 or 3.11% on NSE to trade at Rs 1,555.85 as of 11:42 hours (IST).


The CCI also directed the companies and individuals to “cease and desist” from similar activities in the future. UBL has been penalised with the largest fine of over Rs 750 crore, while Carlsberg has been slapped with a fine of Rs 121 crore. The All India Brewers Association has been fined Rs 6.3 lakh.

The CCI had ordered a probe on the issue in October 2017 and the matter progressed following the filing of an application under Section 46 of the Competition Act. Itwas discovered that the penalised companies had been engaging in cartelisation in eight states, including Maharashtra and the National Capital Region.