NISHITH.TV
  • Mumbai
  • Silicon Valley
  • Bengaluru
  • Singapore
  • Mumbai BKC
  • New Delhi
  • New York

Locations

  • Mumbai
  • Silicon Valley
  • Bengaluru
  • Singapore
  • Mumbai BKC
  • New Delhi
  • New York
  • Content
  • Home
  • ABOUT US
  • NDA in the Media
  • Areas of Service
  • Research and Articles
  • Opportunities
  • Contact
  • NDACloud
  • Client Access
  • Member Access
  • Events and Calendar
  • How we perform
  • Knowledge anywhere, anytime
  • See our recent deals
  • Transactional insights unlocked
  • Up to date legal developments
  • Case studies in M&A

M&A Lab

HTMLPDF

December 18, 2013

Diageo – USL: "King of Good Times" hands over the Crown Jewel to Diageo

On July 4, 2013, the Diageo Group, a British multinational alcohol beverages group completed acquisition of approx. 25.02% of shares of United Spirits Limited, a listed Indian company. The deal valued at about INR 52 Billion eventually was one of the largest transactions especially in the food and beverages industry, not just in India but across the world. The deal was also a landmark in many ways as it prompted certain changes to the M&A regulations in India.

The deal gave the Diageo Group a much anticipated entry into one of the world’s fastest growing liquor market (India). It also saw the maker of leading and marquee global brands such as Smirnoff, Johnnie Walker, Bailey and Guinness, extend its holding to brands such as Black Dog, Bagpiper and McDowell’s.

The consummation of the deal was not without its fair share of challenges. The deal was subjected to a detailed scrutiny by the Securities and Exchange Board of India as well as the Competition Commission of India. Apart from the regulatory scrutiny, the deal was also challenged before the Courts by the lenders of the Sellers (especially the Promoter Group).

The deal has been much in discussions, not only because of the legal, regulatory and commercial issues involved, but also due to the high profile promoter, Dr. Vijay Mallya, who many speculated was sanctioning the sale to ease the rising debt in both United Spirits Limited and Kingfisher Airlines.

For Diageo Group, the deal represents their first step towards consolidating their ever expanding hold in one of the fastest growing spirits market in the world. For Dr. Vijay Mallya and the UB Group, the deal represents a new partnership with an experienced global player and reduction of their (respective) debt. For United Spirits Limited, it represents the best of both worlds as an established local presence meets international governance and operational standards and also deleverages itself. Having said that, time will tell whether Diageo will do justice to the ‘King of Good Times’ going ahead.

For a detailed analysis of the legal, regulatory, commercial and tax considerations of the deal and to access the M&A Lab, please click here.

 

– Ankit Mishra, Prasad Subramanyan, Sambhav Ranka & Nishchal Joshipura

You can direct your queries or comments to the authors

 

INTERESTING READ

FLÄKT (INDIA) LIMITED, FLÄKTWOODS GROUP, HAS ACQUIRED THE AIR MANAGEMENT SYSTEMS08-01-2020
FLÄKT (INDIA) LIMITED, FLÄKTWOODS GROUP, HAS ACQUIRED THE AIR MANAGEMENT SYSTEMS08-01-2020

Mission and Vision


Distinctly Different

What's New


When Titles Don’t Matter: How Supervisory Roles Determine Liability Under the Employees State Insurance Act
HR Law Hotline: May 09,2025
Corporate Social Responsibility Gets a Makeover with Blended Finance and Outcome Based Funding
Yes, Governance Matters. : May 06,2025

Events


Webinars

SIAC 2025 Rules: Key changes & Implications
February 18,2025 - February 18,2025

This event is over. For event material please click here


Seminar

Guided Meditations by Dr. Deepak Chopra
December 14,2024 - December 14,2024

This event is over. For event material please click here


Round Table

Investing In Net Zero
July 22,2022 - July 22,2022

This event is over. For event material please click here

News Roundup


News Articles

2025 Watchlist: Life Sciences Sector India
April 04,2025

Quotes

EU data watchdog blocks EIB data transfer to India, citing privacy concerns
May 06,2025

Newsletters


HR Law Hotline

When Titles Don’t Matter: How Supervisory Roles Determine Liability Under the Employees State Insurance Act
May 09,2025

Yes, Governance Matters.

Corporate Social Responsibility Gets a Makeover with Blended Finance and Outcome Based Funding
May 06,2025

Technology Law Analysis

Indian regulatory environment & judicial proactiveness in tackling child sexual abuse content
April 28,2025

  • Disclaimer
  • Content
  • Feedback
  • Walkthrough
  • Subscribe
Nishith Desai Associates@2016 All rights reserved.