UB in talks to acquire Scottish whiskey major
By Our Corporate Bureau | 18 Nov 2006
Mumbai: The United Breweries group (UB) is eyeing an acquisition of a large Scottish whiskey manufacturer, with an enterprise value of around Rs 4,000 crore, chairman Vijay Mallya said.
"I am targeting the acquisition of a large Scottish whiskey company," he said at the HT Leadership Summit here. "The enterprise value of the company is Rs 4,000 crore. We are only negotiating and nothing has been finalised," he added.
Although Mallya did not name the company, reports have said that the firm in question is Glasgow-based Scotch major Whyte & Mackay. He said negotiation of the deal was at an early stage.
Mallya's view comes in the midst of reports that takeover talks between UB Group and Whyte & Mackay have been stalled over difference on valuation. Whyte & Mackay values itself at Rs 5,077.88 crore.
Mallya said he is also facing opposition from local associations for the acquisition. "We are facing a lot of resistance due to Scotch whiskey associations (on the acquisition bid)," he added.
The Scottish company's brands include Whyte & Mackay Scotch Whiskey, Dalmore Single Highland Malt, Glavya Liquer and Isle of Jura Malt Whiskey. The company also represents other trans-national spirits companies like Fortune Brands and V&S Sprit in markets across the world.
Whyte & Mackay had a marketing and distribution arrangement with Shaw Wallace Company, now part of the UB group.
