Diageo buys big stake in USL
Drinks behemoth Diageo is to spend over one billion pounds taking a majority stake in Indian spirits firm USL.
Drinks behemoth Diageo is to spend over one billion pounds taking a majority stake in Indian spirits firm USL.
The firm will initially pay 660 million pounds for a 27.4% stake in USL, the biggest spirits company in India.
This deal will trigger an obligation on Diageo to launch a mandatory tender offer to the public shareholders of USL.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Consequently Diageo has also announced that it will launch a tender offer to acquire a maximum of 37,785,214 shares, which equates to 26% of USL's shares.
When the deal is complete Diageo will hold 53.4% of USL at an aggregate cost of around £1.29bn.
Paul S Walsh, Chief Executive of Diageo, said growth in the Indian market was being driven by the increasing number of middle class consumers looking to buy premium and prestige local spirits brands as income levels rise.
"The combination of USL's strong business with the capabilities which Diageo brings as the world's leading premium drinks company will ensure that USL continues to lead the industry in India," he said.
MM
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
1,000 children hold over £100,000 in a junior ISA – how to grow tax-free nest egg for your child
Junior ISAs can be a tax-efficient way to grow a nest egg for your child. We explain how they work
-
How to start investing: a beginner’s guide
Getting started in investing is a great way to make your money work harder for you over the long term, as investments tend to outperform cash savings