Allied Blenders & Distillers has called off its acquisition talks with Tilaknager Industries, with the two Indian companies failing to agree a valuation.
In early-July, local reports claimed that delegations of the pair had met in London to finalise ABD's purchase of a majority stake in Tilaknagar. A representative of ABD confirmed that discussions had ended, with price proving the main stumbling block.
"They (Tilaknager) were asking for more than the company is valued at," ABD's executive vice-chairman, Deepak Roy, told just-drinks late yesterday. "This was the major reason for the calling off talks with them.
"There was a huge price difference between what we were offering and what they were asking."
Tilaknagar, meanwhile, declined to comment on the issue, adding: "Given the nature of TI’s business, sector dynamics and to make business progress, the company at several time points is exploring various types of business associations, tie-ups, relationships etc. across players in the domestic and international markets."
Local reports had claimed that ABD was looking for an unspecified majority stake for around US$234m. Neither company would comment on this valuation.
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By GlobalDataTilaknagar owns the Mansion House domestic brandy, which boasts annual sales of around 5m cases. ABD's Officer's Choice is the world's biggest-selling whisky brand.
