Diageo at advanced stage for stake in United Spirits.
News this morning reported on The Drinks Business Website that Diageo are eyeing up a stake in United Spirits. What does this mean for the whisky industry? A deal like this could be huge for Diageo considering the Indian market is reported to be worth a massive $45 billion by 2015. Some key points from this press release.
Diageo is said to be looking for a 27% slice in United Spirits and further reports, given by unnamed sources to Bloomberg, suggested that parts of Whyte & Mackay’s Scotch whisky range may also be up for grabs. The two companies apparently considered a similar deal back in 2009 but could not agree on terms. UB Group ran into difficulties earlier this year when its Kingfisher Airlines wing began to struggle.
- Talks at advanced stage, Diageo looking for a 27% share.
- Deal expected next month, which could give Diageo rights to appoint board members ie chairman.
- There is suggestion that parts of Whyte & Mackay’s Scotch whisky range may also be up for grabs.
Below is the full article from The Drinks Business Website.
Diageo Eyes Stake In United SpiritsTalks are said to be at and “advanced stage” with a deal expected to emerge by next month, which could allow Diageo the right to appoint the majority of United Spirits’ board, including the chairman.
The airline requires US$600 million in the next few months if it is to survive. Neither company has made a statement on the matter. The advantages for Diageo in any such deal would be considerable, not least because it gives the drinks giant a crucial entrance to the notoriously difficult Indian market – a spirits market expected to grow to $45bn by 2015. To view the original article from The Drinks Business Website click here. If you are looking to purchase whisky online, click here.