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HindustanTimes Wed,16 Apr 2014

Diageo-United Spirits deal biggest inbound M&A so far this yr

PTI  New Delhi, November 09, 2012
First Published: 18:39 IST(9/11/2012) | Last Updated: 18:41 IST(9/11/2012)

UK-based Diageo's acquisition of 53.4% stake in Vijay Mallya-led United Spirits for Rs. 11,166.5 crore ($2 billion) could be the biggest inbound M&A deal so far this year.

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Some of the major inbound deals – wherein a foreign company or its subsidiary had acquired an Indian entity – in the past, includes BP's $9 billion acquisition of Reliance Industries' oil & gas assets and the acquisition of Cairn India by NRI billionaire Anil Agarwal led-Vedanta Resources for over $8 billion.

The United Kingdom has been one of the top acquirers of Indian assets over the years as another most prominent inbound deal also involved a UK entity – Vodafone Group. It acquired Essar's stake in Vodafone Essar for $5 billion.

Other key inbound transactions include Japanese drug major Daiichi Sankyo Company's acquisition of majority stake in Ranbaxy Laboratories Ltd for up to $4.6 billion and US-based Abbott's acquisition of Piramal Healthcare's domestic formulation business for $3.72 billion.

Commenting on the deal Deloitte India leader, financial advisory Avinash Gupta said, "This is most likely the largest inbound deal so far this year but it is not a trend and it does not signify that many more such inbound deals are likely to happen. This is just a unique situation where a deal has happened."

World's largest spirits maker Diageo Plc on Friday announced it will acquire 53.4% stake in United Spirits for Rs. 11,166.5 crore in a multi-structured deal, which may provide Vijay Mallya a breather from troubles emanating from the grounded Kingfisher Airlines.

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