Jagadeesh N.V./European Pressphoto AgencyVijay Mallya, chairman of United Breweries Group, which owns United Spirits, in this April 7, 2010 file photo.After months of negotiations, Diageo, the world’s biggest spirits company, has reached a deal with United Spirits of India.
The two companies will announce a deal after markets close on Friday, said a person briefed on the negotiations. Diageo, based in Britain, will buy 25 percent of United Spirits, and then make an open offer for an additional 26 percent of the company to gain a majority stake, per Indian market regulations, this person said.
The entire deal will be worth $1.8 billion, the Wall Street Journal reported. This figure could not be immediately confirmed. Shares of United Spirits rose more than 6 percent in early trading in India Friday, anticipating the announcement.
United Spirits is controlled by Vijay Mallya, whose empire also includes United Breweries, the maker of Kingfisher beer, and Kingfisher Airlines, which has been grounded amid financial difficulties and labor strife.