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Diageo takes control of USL as it buys fresh 26% stake

Succeeding in its second attempt to gain controlling stake in United Spirits, world's largest liquor maker Diageo Plc has acquired an additional 26 per cent shares in India's largest alcoholic beverages company for Rs 11,448.91 crore. UK-based Diageo paid Rs 3,030 for a share of United Spirits Ltd (USL), more than double of Rs 1,440 it offered in the previous bid last year.

Diageo through its wholly-owned subsidiary Relay BV has accepted the tender of 37,785,214 shares in United Spirits Ltd (USL) at a price of Rs 3,030 per share under the tender offer announced on 15 April, Diageo Plc said in a statement. The shares tendered and accepted by Diageo are in the process of being transferred to Relay B V and represent 26 per cent of USL's issued share capital, it added.

‘Diageo, therefore, will have a total interest of 54.78 per cent in USL acquired for a total consideration of Rs 18,023.14 crore,’ it added. Diageo Chief Executive Ivan Menezes said: ‘India has now become one of Diageo's largest markets and will be a major contributor to our growth ambitions.’ USL is the leading player in the Indian spirits market with great brands, a unique route to consumer and talented people, he added.
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