Diageo’s United Spirits deal delayed8th January, 2013 by Becky Paskin
Diageo‚Äôs ¬£1.2bn deal to buy a majority stake in India‚Äôs United Spirits has been delayed.
According to reports, part of the Diageo‚Äôs deal to by a 53.4% share in the Indian drinks group owned by Vijay Mallya, which is to be completed in two stages, has hit setbacks in India.
Diageo‚Äôs mandatory tender offer to acquire up to 26% of United Spirits shares has been delayed, as the group is apparently still waiting for approval from local regulators the Securities and Exchange Board of India and the Competition Commission of India.
The mandatory tender offer was due to begin on 7 January and close on 18 January, but now a new date is expected to be set.
A spokesperson for Diageo said: ‚ÄúThe initial timings were clearly outlined as indicative only. We continue to work towards our initial timeline, which would see the transaction completing in Q1 2013.‚ÄĚ