The Competition Commission of India has given a green signal to the proposed acquisition of a majority stake by the UK-based Diageo in UB group’s United Spirits Ltd.
“Diageo’s acquisition of USL may give a boost to the premiumisation strategy...The combination may increase and improve consumer choice,” CCI said in its order uploaded today.
CCI, in an order dated February 26, has approved Diageo Plc’s proposed majority stake purchase in the Vijay Mallya-led United Spirits, saying the deal would not have an adverse impact on competition.
Relay BV, an indirect wholly-owned subsidiary of Diageo Plc and United Spirits, had submitted a notice to the fair trade regulator seeking its nod for proposed acquisition of shares and control of United Spirits. The notice was given on December 5, 2012, and later the Commission had sought clarifications from both parties quite a few times.