subscribe

Subscribe

ourdepartments

sitesearch

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

04.2014

Massachusetts Beverage Business

AtPressTime

DIAGEO INVESTS IN UNITED SPIRITS

After several years of rumors, drinks company Diageo has agreed to buy up to 53.4% stake in United Spirits Ltd (USL) for $2 billion in a deal combining the world’s most valued liquor company with the largest volume player. This move makes Diageo the new master of India’s booming liquor market with more than 5O% share. India, one of the fastest growing geographies for alcoholic beverages, also becomes Diageo’s second largest market after the US. The British company, however, deemed the acquisition as a partnership with Vijay Mallya to make the latter’s “incredibly strong” liquor empire more successful. Mallya will remain chairman. United Breweries Holdings Ltd will own a 14.9% stake at the end of the transaction. 
Diageo and Mallya also entered into a separate agreement to float an equal South African JV, after the former decided to take a 5O% stake in the privately held United National Breweries of the Indian liquor czar. This could become a broader vehicle to expand Mallya’s interests into other emerging markets.

Back to the top »