Diageo buy 53% stake in Mallya’s United Spirits Ltd for $2bn. UNITED SPIRITS and DIAGEO Deal – Diageo does $2.1 billion deal for Mallya’s United Spirits.
Drinks giant Diageo Plc has agreed to buy up to 53.4% stake in United Spirits Ltd (USL) for $2 billion (over Rs 11,000 crore) in a deal combining the world’s most valued liquor company with the largest volume player.
This one swig makes Diageo the new master of India’s booming liquor market with more than 50% share. India, one of the fastest growing geographies for alcoholic beverages, also becomes Diageo’s second largest market after the US.
“This (India) will become Diageo’s number two market after the United States and if you look at the projections on what’s happening with the emerging middle class…it has the potential in the long term to become our largest market,” said Diageo Chief Operating Officer Ivan Menezes.