Diageo & United Spirits - The Denouement
The waiting is finally over. Diageo has agreed a deal to take a controlling stake in UB Group's United Spirits division in India. Here's how the story unfolded over the last few months.
Diageo has agreed a deal to acquire a 53.4% controlling stake in United Spirits for INR111.7bn (US$2.05bn), the companies said today.
United Spirits' chairman Vijay Mallya has rejected the idea he has “sold the family silver” by agreeing a deal with Diageo and said it is a “dream come true”.
Diageo boss Paul Walsh has said he is “ambivalent” about the possible prospect of losing Whyte & Mackay to ensure the United Spirits deal goes through.
The CFO of Diageo has reiterated the company's intention not to be drawn on speculation suggesting that a tie-up with UB Group's United Spirits division is imminent.
Like many other 'industry observers', I noted Reuters' brief chat with UB Group's Vijay Mallya at the Indian Grand Prix last weekend with interest.
Vijay Mallya, the head of India's UB Group, says he is "under no compulsion whatsoever" to sell a stake in United Spirits to Diageo to fund his embattled Kingfisher airline.
The reports out of India late last week that the chairman of The UB Group has been hit with a warrant for his arrest will have been greeted with raised eyebrows by many in our industry – not least, those of you that work for Diageo.
A 'non-bailable warrant' for Vijay Mallya, the head of India's UB Group, has been issued in the country, according to local reports.
On Tuesday, Diageo confirmed it was in talks with United Spirits over buying a stake in the UB Group-owned Indian drinks firm.
Earlier today (25 September), Diageo confirmed that it is seeking to buy a stake in UB Group's United Spirits division in India. Here's a look at the Indian alcoholic drinks landscape and Diageo's current position in it.
Diageo and the UB Group have confirmed that they are in talks over taking a stake in United Spirits.
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