Advertisement

HindustanTimes Wed,17 Sep 2014

CCI clears Diageo-USL deal, shares surge

PTI  New Delhi, March 01, 2013
First Published: 20:46 IST(1/3/2013) | Last Updated: 20:47 IST(1/3/2013)

After seeking clarifications and changes four times in a proposed acquisition of majority stake by UK-based Diageo in UB group's United Spirits Ltd, fair trade regulator Competition Commission of India (CCI) has ruled that the deal would give a boost to entry of premium brands in alcoholic beverage market.

Advertisement

"Diageo's acquisition of USL may give a boost to the premiumisation strategy... The combination may increase and improve consumer choice," CCI has said.

United Spirits shares rose 2.02% on the BSE and closed at Rs. 1,877 post the announcement.

CCI, in an order dated February 26, has approved Diageo Plc's proposed majority stake purchase in Vijay Mallya-led United Spirits, saying the deal would not have adverse impact on competition.

The proposed transaction worth about $2 billion would provide much needed cash for Mallya's UB group, whose aviation venture Kingfisher Airlines is facing turbulent times.


Advertisement
more from Business

Sensex rebounds 127 points in early trade on global cues

After two sessions of losses, the benchmark BSE Sensex recovered sharply by over 127 points in early trade on Wednesday on emergence of buying by funds and retail investors amid a firming trend in other Asian markets.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved