Diageo in talks to buy stake in Vijay Mallya's United Spirits: report
22 Sep 2012
Diageo Plc, the world's biggest spirits maker, is in talks to buy a significant stake in United Spirits, the spirits division of Vijay Mallya's UB Group, The Telegraph yesterday reported without citing any sources.
London-based Diageo, whose products include Johnnie Walker, Bell's, Smirnoff vodka, Guinness and Gordon's Gin among many others, has returned to the negotiating table after it walked away from concluding a deal in 2009. (See: UB to sell nearly 15 per cent in USL to Diageo)
The report said that Diageo is keen on pushing for a deal, where it could get strategic control of United Spirits.
Under a deal that is being worked upon, Mallya, who owns 28 per cent of United Spirits, will lose his post of the chairman and remain a shareholder in the company, while Diageo may get the right to appoint a new chairman and majority of board members.
United Spirits, formerly known as McDowell & Company Limited, is India's largest maker of alcoholic beverages by market value and the world's largest spirits company by volume.
Besides owning Whyte & Mackay and Bouvet Ladubay, the Bangalore-based company has 22 "millionaire brands" its portfolio and has a 59-per cent market share for its first line brands in India.