British booze giant, Diageo, has confirmed it is in talks to invest in Indian outfit United Spirits.
United Spirits is listed on the National Stock Exchange in Mumbai and rumours of the transaction have seen the shares rise 8% since Monday.
United's market cap is currently around 141bn rupees, or £1.62bn. It also claims to be the biggest spirits company in the world by volume, owning the McDowells rum and brandy brands.
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Tuesday's statement makes clear there is no certainty "discussions will lead to a transaction".
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