Vijay Mallya’s UB Group fulfilled a much cherished desire to acquire a ‘spirit of Scotland’ with the acquisition of Whyte & Mackay for GBP 595 million through its flagship company, United Spirits Ltd.
Pursuing the deal over the last one year, India's largest alcoholic drinks company and the world’s third largest by sales volume will take over all the shares held by W&M’s chairman Vivian Imerman and other investors.
With this deal, the UB Group would be able to prop up the company’s Scotch and Jura single malt brands in India and China. W&M have a spectrum of brands from ‘value’ to ‘super premium’ which would be promoted across various market segments in the country.
The Scotch Whisky Association in Edinburgh has welcomed Mallya’s takeover, encouraged by the international appeal of Scotch whisky, and the bright prospects of the industry.
W & M's stocks of 155 million liters of alcohol has been valued between GBP 350 million and GBP 400 million, ensuring a sufficient supply for blending with Indian liquor. The deal has been funded by ICICI Bank and Citigroup, and includes the debts of W & M, which amount to GBP 175 million.
Mallya's ambitious plans include listing the business on the London stock exchange, enabling further acquisitions. Some of W&M’s brands may be re-launched, he further revealed.
