Mumbai, May 27: SABMiller has acquired Shaw Wallace’s 50 per cent stake in Shaw Wallace Breweries for Rs 800 crore.

“Shaw Wallace & Company, its subsidiaries and affiliates have entered into agreements with Mysore Breweries Investments and its associates to divest the beer joint venture,” said a statement issued by the company today.

The share buyout will take SABMiller’s holding in Shaw Wallace Breweries to 99 per cent. It will make Mysore Breweries Investment an indirect subsidiary of Shaw Wallace.

The brewery business of Shaw Wallace is distinct from distilleries, which have been acquired by the UB group. Haywards 2000, Haywards 5000 and Royal Challenge from the Shaw Wallace stable will be part of SABMiller’s fold, which boasts of SABMiller Castle Lager beer.

The SABMiller-Shaw Wallace combine has a 35 per cent share of the beer market, while the UB group has 45 per cent.

Analysts say the move to snap up all of the brewery business was triggered by UB’s acquisition of Shaw Wallace’s spirits division.

The Jumbo group, of which Shaw Wallace was a part, has pulled out of most ventures in the country, except Dunlop. The brewery sale thins its presence further.

Shaw Wallace owns seven breweries and has agreements with several smaller ones. The business, largely untapped so far, holds a lot of promise in India, unlike the saturated markets of China. So far, Shaw Wallace Breweries got a large chunk of its sales from beer.

The brewery venture, forged in May 2003 by SABMiller’s Indian subsidiary, Mysore Breweries, and Shaw Wallace, was called Shaw Wallace Breweries. The SABMiller spokesman indicated it would have to be renamed.

The acquisition will give SABMiller ? South African Breweries earlier ? full control of its operations in India. In addition to Castle Lager, the company’s other key brands include Miller Lite and Peroni Beers, though some of these are not available in India.