Diageo may seek to buy upto 25% stake in USL: Sources

Diageo India Advisory Committee may have discussed United Spirits (USL) sale, reports CNBC-TV18, quoting sources.

Sources say the committee is open to USL retaining the management control. Diageo may seek to buy upto 25% stake in USL. Drinks giant will have option to hike stake at later stage. Sources also say Diageo will seek three-four board seats in USL. Sources say Diageo-USL will jointly share sales, marketing and distribution channel post deal.  USL will use Diageo's international presence to sell products and vice versa. The partnership will explore joint initiatives in India later. CNBC-TV18 had reported earlier that the UK official of fair trade had raised concerns over the Diageo-United Spirits deal as the regulator is concerned about Diageo’s indirect holding in Whyte & Mackay (W&M). Since Diageo and USL have a large market share in the scotch and vodka segment, the  regulator fears  the deal will lead to monopoly for the former. When contacted, USL refused to comment. Also read: UB Group likely to offload up to 49% in Whyte & Mackay