Diageo welcomes nod from United Spirits' shareholders on licensing deal
United Spirits will produce and sell Diageo's brands in India under licence
In a filing late last week, United Spirits reported that 76.33% of its minority shareholders had voted in favour of the licensing deal, just above the 75% minimum requirement. A vote last month had seen investors narrowly reject the deal.
Shareholders were asked to approve the licence for the "manufacture and distribution of bottled-in-India products, under licence from Diageo" and the distribution of "bottled-in-origin products" in India.
In a statement to just-drinks today, Diageo said it is “pleased” the agreement has been approved. “The full combination of brands across sales, marketing and production will enhance our offering to customers and consumers in the premium and above sectors,” the statement added.
“These are the fastest growth segments of the Indian spirits markets and implementation of a full distribution agreement for Diageo's wholly-owned brands will drive top-line growth and value accretion for United Spirits.”
The deal has come about after Diageo took majority control of United Spirits last July, gaining a 55% stake in the company.
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