Decks all clear for Diego-United Spirits deal, says Mallya
05 Mar 2013
Vijay Mallya, liquor tycoon and promoter of the dying Kingfisher Airlines, today said his United Spirits and Diageo Plc have received all regulatory approvals for their Rs11,166.5 crore deal in which United Spirits, part of the United Breweries (UB) group will sell a 53.4 per cent stake to the UK-based firm.
Talking to reporters after a meeting with finance minister P Chidambaram, Mallya said, ''CCI (Competition Commission of India) approval has been received. All regulatory approvals have been received. So it (the deal) is on track.''
The CCI approved Diageo's proposed stake purchase on 26 February, after seeking clarifications and changes four times.
The CCI finally ruled that the deal would not be anti-competitive and would in fact give a boost to the entry of premium alcoholic beverage brands.
Diageo Plc had earlier said it would launch its mandatory open offer worth over Rs5,441crore to acquire a 26-per cent stake in United Spirits from the public between 7 January and 18 January this year; but the delay in getting CCI approval had made it complicated.
In November last year, in one of the biggest stake sales by an Indian firm to a foreign company, Diageo agreed to buy a majority stake in United Spirits for Rs11,166.5 crore in a multi-structured deal.