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News
Diageo and United Spirits on brink of deal
Diageo and United Spirits are reportedly on the verge of signing a US$2 billion deal.
The deal could see the drinks giant pick up a 51% stake in Vijay Mallya’s struggling company.
Mallya first fell into difficulties in March when his Kingfisher Airline was grounded, in debt to the tune of US$1.3bn.
Since then his difficulties have mounted and he looked to reduce his share in Whyte & Mackay which, in early autumn, led to rumours that Diageo was looking to buy into the company, something that was confirmed later in September.
However, the talks had appeared to have broken down causing share prices to plummet and adding to Mallya’s woes.
Times of India reported that a deal could be announced this week and the news has buoyed share prices, which rose 3.09% to 1,257.30 rupees on the Bombay Stock Exchange.