Diageo takes stake in India’s United Spirits


LONDON (AP) — Diageo PLC, the world’s largest distiller, says it will buy a 53.4 percent stake in Indian drinks manufacturer United Spirits Ltd. in a deal worth $2 billion.

Diageo will acquire a 27.4 percent stake in United Spirits at 1440 rupees ($26.32) a share, or 660 million pounds ($1.05 billion), and make a tender offer for another 26 percent.

London-based Diageo, whose brands include Johnnie Walker, Smirnoff and Guinness, has been seeking access to India’s fast-growing alcohol market.


advertisement

United Spirits is controlled by Indian entrepreneur Vijay Mallya, who needs money to shore up his Kingfisher Airlines, which has been teetering near bankruptcy. Diageo says Mallya will remain chairman of United Spirits.

Diageo shares rose 0.2 percent Friday morning to 17.93 pounds on the London Stock Exchange.

© 2012 The Associated Press. All rights reserved.

More articles filed under Business News

Leave a Comment

Please use the comment box below for general comments, but if you feel we have made a mistake, typo, or egregious error, let us know about it. Click here to "call us out." We're happy to listen to your concerns.