Diageo is closing in on a deal to dramatically grow its presence in the key emerging market of India.
The Guinness and Smirnoff maker is set to pay around £500m for a minority stake in United Spirits, which owns the Whyte & Mackay Scotch whisky brand.
However, according to press reports, the investment could depend on Diageo being handed management control of the company.
A source told The Times: “[Diageo chief executive] Paul Walsh has been clear for many years that any deals must deliver control or an explicit route to control [of the target]. That remains the case, whether in this case of the ongoing talks with [tequila brand] Jose Cuervo.”
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Yesterday Diageo and United Spirits issued a joint statement officially announcing that talks over a deal were indeed underway, confirming widespread speculation that a sale was in the offing.
“However, there is no certainty that these discussions will lead to a transaction,” Diageo cautioned.
via Diageo closes in on deal for India’s United Spirits | News | The Grocer.