The Hindu Business Line : United Spirits set to finalise deal with Whyte & Mackay

"We will announce the deal shortly," the United Spirits Chairman, Mr Vijay Mallya, told Business Line. When asked whether the liquor major had stuck to its stand of not raising the bid price, Mr Mallya said the company would come out with the details shortly. Sources say that United Spirits had offered around £475 million to acquire Whyte & Mackay. But the final amount could be in the range of £500 million - £550 million.

Some of Whyte & Mackay's brands include Vladiver Vodka, Glayva liqueur, Isle of Jura and Dalmore single malt whiskies.

More than 50 per cent of the volumes come from its private label Scotch. Chairman Mr Vivian Immerman and Iranian industrialist Mr Robert Tchenguiz are the main investors in the company.

Sources close to the deal say that while the original bid price could remain the same, an additional amount could be paid for the inventory of Scotch Whisky.

Sources say that even if United Spirits pays more for the acquisition, it will try to recover the extra cost it will fork out by listing the company on the London Stock Exchange and divesting up to 49 per cent to the public and institutions.

This will give United Spirits the option of getting the additional amount back as well as a foothold on the London bourse. It will also give the company access to the prized Scotch, which it currently imports for blending it with locally made liquor. United Spirits is also eyeing the US market where there is a growing interest for Scotch.

With a 47 - 49 per cent share in the domestic market at present, access to original Scotch will help United Spirits pose a stiff competition to some of the major multinational liquor companies which are charting out plans for the Indian market.

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