United Spirits (USL) the flagship company of Vijay Mallya has entered into exclusive talks with the world`s largest drinks company, Diageo, for a partnership including a minority stake sale, reports Economic Times.
It is learnt that a top Diageo`s team arrived in Mumbai for talks with Mallya and the United Spirits honchos. Diageo could buy 14.99% stake initially and enter the USL board with two representations, besides a distribution partnership in the Indian market.
It is said that the stake sale may fetch USD 450/500 million but there was no confirmation. The exclusivity pact means Diageo may have piped other potential bidders-unless it fails to formalize a deal-like Bacardi for a stake buy in the biggest emerging market spirits company.