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The proposed stake sale between Vijay Mallya-owned United Spirits and UK-based Diageo may have hit regulatory hurdles. CNBC-TV18 learns from sources that the proposed USL- Diageo deal has hit antitrust hurdle again.
The proposed stake sale between Vijay Mallya-owned United Spirits and UK-based Diageo may have hit regulatory hurdles. CNBC-TV18’s Kritika Saxena learns from sources that the proposed USL- Diageo deal has hit antitrust hurdle again.
Diageo, the world's largest spirits company by value, is looking to buy up to 26% stake in USL.
An earlier attempt at stake buy had fallen through back in 2009, after the liquor makers failed to agree on valuation.
Diageo and USL restarted stake sale talks in February of this year. Sources say the proposed deal is expected to close in September.
The UK official of fair trade has raised concerns over the deal. The regulator is concerned about Diageo’s indirect holding in Whyte & Mackay (W&M).
Diageo and USL have a large market share in scotch and vodka segment and the regulator thinks the deal will lead to monopoly for the former.
When contacted, the UB group spokesperson declined to comment on the matter.
United Spirits stock price
On October 01, 2014, United Spirits closed at Rs 2346.80, down Rs 53.25, or 2.22 percent. The 52-week high of the share was Rs 2940.55 and the 52-week low was Rs 2226.00.
The latest book value of the company is Rs 262.47 per share. At current value, the price-to-book value of the company was 8.94.
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