UK/INDIA: Still more to do on United Spirits deal - Diageo

By | 1 March 2013

Diageo is still waiting on SEBI clearance

Diageo is still waiting on SEBI clearance

Diageo has confirmed that India's competition watchdog has okayed its planned purchase of a stake in United Spirits, but warned that further approval is still needed.

Yesterday (28 February), the Competition Commission of India (CCI) said on its website that it has cleared Diageo's INR111.7bn (US$2.05bn) buy of a majority share in United Spirits. However, Diageo told just-drinks today that it is still waiting for clearance from the Securities and Exchange Board of India (SEBI).

A spokesperson said: “I can confirm that Diageo has received CCI approval. SEBI clearance has not been received; we have received SEBI's letter of observations and are responding to it.”

Last month, SEBI confirmed on its website that it had sent Diageo a "letter of observation", but its comments on the deal are not public. 

Diageo also requires approval from India's central bank, the Reserve Bank of India, before it can launch the tender offer. The spokesperson said: “We intend to launch the mandatory tender offer within 12 working days of the receipt of all applicable statutory approvals.”

Diageo announced its long-expected play for a stake in United Spirits in November.

Expert analysis

Diageo plc - SWOT, Strategy and Corporate Finance Report

Diageo plc - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials, and corporate actions, providing a 360° view of the company.

Sectors: Emerging markets – BRIC, Mergers & acquisitions, Spirits

Companies: Diageo, United Spirits

View next/previous articles

Currently reading -

UK/INDIA: Still more to do on United Spirits deal - Diageo

1 Mar 2013 -

just the Research

There are currently no comments on this article

Be the first to comment on this article

Related research

United Spirits Limited - Strategy and SWOT Report

United Spirits Limited - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360° v...

Related articles

just the Round-Up - The week in drinks

The top ten stories published on just-drinks this week:

INDIA: Empee Distilleries, United Spirits agree IMFL production tie-up

Empee Distilleries has secured a three-year contract with United Spirits to produce Indian Made Foreign Liquor (IMFL) for the Diageo-controlled company in the state of Karnataka.

Product Launch - US: Diageo's Ciroc Amaretto

Diageo has launched what it claims is the first Amaretto-flavoured vodka.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page