Diageo, UB Confirm USL Negotiations
September 25, 2012Diageo and India’s UB Group have confirmed that they’ve been discussing the idea of Diageo taking an interest in UB Group’s USL spirits unit. A joint statement from the two companies today cautioned that “there is no certainty that these discussions will lead to a transaction.” Late last week reports surfaced that Diageo was aiming for a deal that would give it a majority on USL’s board, including the chairmanship.
UB chairman Vijay Mallya needs funding to help rescue his struggling Kingfisher Airlines unit. Diageo, meanwhile, appears intent on continuing its run of aggressive dealmaking, which, in addition to the UB talks, also includes ongoing negotiations toward gaining control of Jose Cuervo, as well as a string of already completed deals, like those for either increased stakes or full control of Turkey’s Mey Içki, Vietnam’s Halico, Brazil’s Ypióca cachaça and China’s ShuiJingFang.
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