HindustanTimes Sat,25 Oct 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.


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.

more from Business

Fireworks back for FMCG companies this Diwali

With the overall consumer sentiment improving, companies are launching new products, and are finding buyers too. Premium products are selling particularly well, according to executives at several large consumer goods firms.
Most Popular
Copyright © 2014 HT Media Limited. All Rights Reserved