Securities and Exchange Board of India (Sebi) has submitted its final observations on the USL-Diageo deal. However, it might take another month for the competition watchdog to assess if Diageo's move to snap up a majority stake in Vijay Mallya's United Spirits will adversely impact comeptition and consumers or not. Both the companies have responded to additional queries raised by the Competition Commission of India. CNBC-TV18's Malvika Jain reports if the CCI is likely to give a go ahead to the USL-Diageo deal.
It would be premature at this stage to say whether the CCI is going to give a go-ahead to this deal or not. However, both USL and Diageo have submitted a 700-page long reply to the CCI on February 6. They have shared the alcoholic beverages market, the market share that both of these companies have in different sub-segments of the alcoholic beverages market. They have also disclosed details of their pricing of their sales numbers.
CCI officials who are assessing the documents believe that it is possible that they may need further clarity on two issues, one is related to the market structure and the second is related to the transaction, the deal between USL and Diageo. The commission is likely to take a final decision on whether to give a go ahead to the USL-Diageo deal or not within the next 30 days.