Suntory keeps quiet over Radico Khaitan rumours

Suntory has refused to confirm or deny reports that it plans to acquire a 26% stake in the IMFL business of India’s Radico Khaitan.

Suntory has refused to confirm or deny rumours that it is closing in on a deal to acquire a 26% stake in Radico Khaitan’s IMFL business

The Indian financial press has circulated reports in recent days that the Japanese drinks group is close to finalising a deal to purchase a stake in Radico Khaitan’s India Made Foreign Liquor (IMFL) segment.

The business accounts for 70% of Radico’s total revenues and includes brands such as Magic Moments vodka, Contessa Rum, After Dark whisky and Verve Vodka.

According to India’s moneycontrol.com, Suntory has proposed to acquire the stake for Rs 900 crore.

The site also reported that in order to facilitate the acquisition, Radico will transfer its IMFL arm into a separate subsidiary.

Reports state that Radico would retain a controlling stake in this separate business.

However, when approached by The Spirits Business, Suntory declined to comment, or confirm or deny these reports.

It was announced in January this year, that Suntory is to acquire US company Beam Inc, owner of Marker’s Mark Bourbon and Courvoisier Cognac, for US$16 billion.

If confirmed, this deal would see Suntory become the next company attempting to assert its presence in the coveted Indian drinks market.

Diageo has been involved in an on-going battle to acquire a controlling stake in India’s United Spirits since 2012.