INDIA: United Spirits takes control of Sovereign Distilleries
United Spirits acquires control of Sovereign Distilleries
United Spirits has acquired a further 20% stake in Sovereign Distilleries, taking its shareholding in the spirits group above 50%.
United Spirits said late last week that it has bought another 19.99% in Sovereign Distilleries, taking its total sharheolding in the group to 61.53%. The deal means that Sovereign becomes a subsidiary of United Spirits, which is part of Vijay Mallya's UB Group and accounts for around two thirds of India's spirits market by volume.
Sovereign is based in the southern state of Karnataka. Financial details behind the transaction were not disclosed.
Reports out of the country earlier this year linked United Spirits with a full takeover of Sovereign for a reported INR2.3bn (US$51.7m). The company said at the time that it is keen to increase its supply base for Extra Neutral Alcohol (ENA).
In January, United Spirits lined up the full purchase of Pioneer Distilleries, which has a distillery near Nanded in Maharashtra, east of Mumbai.
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