M&A

Diageo acquiring United Spirits Limited

About the acquirer company- Diageo

Diageo is a global leader in beverage alcohol with an outstanding collection of
brands across spirits, beer and wine categories. These brands include Johnnie
Walker, Crown Royal, JB, Buchanans, Windsor and Bushmills whiskies, Smirnoff,
Croc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and
Guinness.
Products are sold in more than 180 countries around the world
Listed both on New York Stock Exchange & London Stock Exchange

About the target company - USL

Has a portfolio of more than 140 brands, of which several are global iconic
brands across flavors. The company has twenty-one brands in its portfolio that
sell more than a million cases each year, of which five brands each sell more than
10 million cases annually, Additionally it also has nine brands that sell over half a
million cases each year. USL brands in the prestige and above segment including
McDowell's No.1, Royal Challenge, Signature Antiquity and Black Dog constitute
a quarter of the company's total annual volume

The acquisition
Inbound because Diageo is a foreign company and USL is an Indian company
and money is coming into the country
Strategic acquisition same line of business and hence expansion for Diageo

Tiara because it would be only a one time acquisition

Friendly - the holding company of the UB Group, and other promoter
companies sold 14.98% in United Spirits for 344.19 million (around Rs.2,070
crore) to Diageo
Acquisition Diageo holds majority stake

The deal
Stock - On 27 May 2013 Diageo subscribed for a preferential allotment of new
shares in USL amounting to 10% of the post-issue enlarged share capital at a total
consideration of INR 20,927,196,000 (249,255,052). Separately, Diageo
acquired 58,668 additional USL shares in the Tender Offer for a total
consideration of INR 85,778,082 (983,789).
Drinks giant Diageo, with its headquarters in London, increased its stake
in USL to 54.8% from 28.8% earlier, as its second open offer to public
shareholders of the Indian spirits major met with complete success on July 3rd
2014.