Diageo closes in on United deal

Published on 17/10/2012 00:00

INDIAN tycoon Vijay Mallya and senior executives of his United Spirits are reported to be close to selling a controlling stake to drinks group Diageo.

Mallya and some of his top team are likely to remain on the board of United, with Mallya staying on as chairman.

However, the roles of chief executive and chief financial officer are expected to be taken over by executives at Diageo, Scotland’s biggest distiller behind brands such as Johnnie Walker and Bell’s. Mallya owns Whyte & Mackay whisky and Kingfisher Airlines.

Diageo admitted last month it was discussing “possible transactions” to acquire an interest in United. The price is likely to be in the region of 1,200 rupees (1,380p) per share, valuing a 50 per cent stake at about £1 billion.