9 November 2012 – Source: The Scotsman
Diageo has bought a majority stake in Indian United Spirits, previously owned by Vijay Mallya. The deal is worth £1.3 billion and consists of a direct purchase of a 27.4% stake for £660 million and a mandatory tender offer for 26% from other shareholders.
The talks between Diageo and United Spirits have lasted more than a month. Vijay Mallya has been under increasing pressure to generate cash to infuse into his debt-ridden Kingfisher Airlines.
As United Sprits also owns Scotch whisky producer Whyte & Mackay, four malt whisky distilleries (Dalmore, Isle of Jura, Fettercairn and Tamnavulin) will change ownership, as well as the Invergordon grain whisky distillery. So far it is unclear if this part of the deal will be a case for anti-trust regulators.