INDIA: Diageo, United Spirits talks conclude
Announcing the move ahead of its full-year results later this week, Diageo confirmed today (25 August) that the two companies had reached loggerheads over the cost of a stake buy in United Spirits.
"Diageo has today announced that the talks which had been taking place with United Spirits, and aimed at finding a mutually beneficial arrangement for the future of both businesses in the India market, have been concluded," a spokesperson for Diageo said.
"It has not proved possible for Diageo to resolve points of difference between the two parties, principally valuation, and Diageo has made the decision to pursue the potential it sees for its brands in India separately from United Spirits."
Earlier this month, United Spirits told just-drinks that it was closing in on fresh investment. A United Spirits source previously said that the group, which constitutes two thirds of India's spirits market, was in talks with major private equity groups.
just-drinks understands that the talks between Diageo and United Spirits considered a variety of possible partnerships, ranging from Diageo acquiring a 15% stake to joint-control.
Three years ago, Diageo teamed up with Indian spirits group Radico Khaitan, to form a 50:50 joint venture to "exploit the large and developing Indian made foreign liquor (IMFL) segment", the companies said at the time.
The long-running discussions between Diageo and United Spirits over a possible stake purchase have collapsed, with Diageo walking away from the table....
Pernod Ricard's share price has edged up after a set of resilient half-year results, but it all hangs on the next six months....
East African Breweries Ltd, the division of Diageo, has reported a 9% fall in net profits for its fiscal half-year, despite a rise in sales....
- Is Diageo on the Brink of a Brain Drain?
- SABMiller edges Diageo as beer trumps spirits
- Comment - Heineken's move for Pivovarna Lasko
- Will Keurig Kold come to Coca-Cola Co's Rescue?
- Focus - SABMiller's FY Sales Performance by Region
- Rémy Cointreau eyes recovery after Q4 bounceback
- Carlsberg exec joins Diageo as Africa chief steps
- Diageo YTD sales come in flat
- Belvedere unveils executive team
- Stock Spirits recruits Drambuie head for MD role