INDIA: Diageo gets regulatory nod for Pioneer Distilleries move

By | 21 August 2013

Diageo wants full control of Pioneer

Diageo wants full control of Pioneer

Diageo has confirmed that its bid to take full control of United Spirits subsidiary Pioneer Distilleries has been cleared by India's financial regulator.

Last month, the UK-headquartered group and United Spirits said they would make an open offer for INR157.9m (US$2.65m) worth of Pioneer's shares. The tender period will start on 28 August and end on 11 September. 

“Diageo can confirm that the MTO document has been through the standard SEBI (Securities and Exchange Board of India) review and clearance process," a company spokesperson told just-drinks yesterday (20 August).

The move follows Diageo last month becoming the biggest shareholder in United Spirits, upping its stake to 25.02%. This week, the group's former CEO Paul Walsh was appointed a non-executive director on the United Spirits board. 

Expert analysis

Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review

Diageo plc (Diageo) is one of the world's leading companies in the beverage alcohol industry. The company carries out the production and distribution of spirits, beer and wine. The key brands of the company include Johnnie Walker, Smirnoff, Captain Morgan, Baileys Original Irish Cream, J&B, Tanqueray, Guinness, Crown Royal Canadian, Beaulieu Vineyard and Sterling Vineyards, and Bushmills Irish. Diageo also has distribution rights for the Jose Cuervo tequila brands in North America and various other markets.

Sectors: Emerging markets – BRIC, Spirits

Companies: Diageo, United Spirits

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