McDowell & Co. is to acquire up to 54.54% of its fellow Indian drinks group Shaw Wallace & Co Ltd from Jumbo World Holdings Ltd for INR8.5bn (US$194m).

A joint statement from the companies said that McDowell - owned by the UB Group - and its associates would acquire a controlling stake in Shaw Wallace by paying INR325 (US$7.4) a share.

Following the deal, UB Group will become the world's second largest spirits producer, with annual sales of 60m cases.

The UB group also announced yesterday (21 March) that it would raise the price of its open offer for another 25% of Shaw Wallace. Last month the company had said it would offer INR250 per share, through McDowell and two other group companies. It is now offering INR260 per share.

The UB Group will also purchase some liquor distribution companies owned by the Chhabria family, which controls Jumbo World Holdings.