Diageo Plc and United Spirits Ltd to benefit from Deal

Diageo Plc and United Spirits Ltd to benefit from Deal

Diageo Plc, which is accredited as the world's largest spirit maker, has announced that they are going to buy a stake in the United Spirits Ltd. Suspicions were going on in regard to the deal, but nothing was confirmed at that time.

However, it is now that both the companies have confirmed that the deal is going to take place. It is said that Diageo Plc, which is the maker of Johnnie Walker Scotch, is going to have a 53.4% stake in the United Spirits Ltd for which they are going to pay whooping 111.7 billion rupees.

It shall be noted that the stake being mentioned above will not be gained all together. Diageo Plc will take 27.4% stake initially and then will propose for other 26% stake. The deal is said to prove benificial for both the companies, as Diageo Plc will be able to enhance i its position in the business.

On the other hand, United Spirits Ltd has been facing neck deep financial problems. The deal will surely help them out. "Diageo will get a foothold into the company and the Indian market, and the Mallya group will get the money to pay the debt of Kingfisher", said Deven Choksey, who is positioned as the managing director at K. R. Choksey Shares & Securities Pvt.


FrenchTribune Specials

Physics can Help Explain how Airplanes Evolved

Airplanes have evolved to increase efficiency, said researchers from Duke University in their new study. As per the researchers, there is a physics law that can very well explain how airplanes have evolved.

Prof. Adrian Bejan from the Duke University said that he has stated a law of physics over two decades back. The law shows that air...

Most Popular

Controversial Facebook page titled ‘530 Fatties’ taken down

On Monday, a controversial Facebook page titled `530...

WSJ: Google made failed bid for Spotify streaming music service late last year

The Wall Street Journal (WSJ) said in a Tuesday report...

Transient Exoplanet with Longest Year Ever Seen

A transiting exoplanet has been discovered, which as per...

Galaxies have Their Own Sense Of Rhythm

An all new galactic motion has been identified by the...

Poll

Can Greece Come out of Economic Problems: