Diageo granted appeal over thwarted deal

11th February, 2014 by Amy Hopkins

Diageo has said it is “pleased” by the decision of India’s Supreme Court to hear its appeal over the “wrong” annulment of its United Spirits deal.

Diageo

India’s Supreme Court has announced it will hear Diageo’s appeal against its crushed bid to acquire a majority stake in United Spirits

The UK drinks company has been engaged in an ongoing battle to acquire a majority stake in India’s United Spirits for a number of months.

While Diageo completed a deal which would see it become the majority shareholder of the company last July, India’s regional Karnataka Appeal Court annulled the deal outright following a petition launched by creditors of United Breweries Holdings, which sold its stake in United Spirits.

Diageo and United Breweries chairman Vijay Mallya has since announced his intentions to challenge the ruling.

It was revealed yesterday that India’s Supreme Court would hear Diageo’s appeal against the annulment “at length”.

“We are pleased that our appeal will now be heard,” said a Diageo spokesperson.

“Diageo remains of the view that the Karnataka Appeal Court decision was wrong in law and based on erroneous facts.”

“Diageo continues to believe that its purchase of USL shares from UBHL is genuine and bona fide.”

The company added that it would not be appropriate to comment on the ongoing court proceedings any further.

The appeal will be heard in April.

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