Diageo planning to take a 15% stake in USL

Finally the news of Diageo planning to take a 15% stake in the Vijay Mallya owned United Spirits (USL) has been confirmed. The deal is expected to be to the tune of 450- 500 million USD valuing USL at around 3.5 billion. The USL deal is expected to be pegged at double the current USL’s price of Rs 771. Diageo had earlier entered into a JV with Radico Khaitan to gain a foothold in the Indian Spirits market. The JV seems to be running into doldrums if Diageo goes ahead with the proposed stake. USL currently enjoys a 55% market share in the Indian Spirits market.