Bloomberg 05 July 2013
Diageo Plc, the world’s biggest distiller, gained control of United Spirits Ltd. after completing the final stage of a transaction to acquire a stake in the Indian maker of Bagpiper whiskey.
The London-based company bought a 14.98 percent stake from a firm owned by Vijay Mallya for 31.3 billion rupees ($521 million), Diageo said in a statement yesterday. That gives it a 25.02 percent holding at a total cost of 52.4 billion rupees, which combined with voting and other governance arrangements with Mallya is enough for control.
The stake in United Spirits will give the U.K. company the leading position in the world’s largest whiskey market. Distillers such as Diageo and Pernod Ricard SA (RI) are seeking to expand in emerging markets where booming economic growth is creating a burgeoning middle class with more disposable income. Diageo will seek to push Johnnie Walker whiskey in India.