10-06-2006, 05:02 AM
<b>UB buys scotch giant for 400 mn pounds</b> <!--emo&:clapping--><img src='style_emoticons/<#EMO_DIR#>/clap.gif' border='0' style='vertical-align:middle' alt='clap.gif' /><!--endemo-->
MUMBAI/KOCHI: Corporate India is awfully hungry. That, perhaps, explains the frenetic pace at which Indian companies are shopping for good buys in every part of the world.
Sources at Vijay Mallya's United Spirits, a part of the United Breweries (UB) group, said they are buying the Glasgow-based Whyte & Mackay for 400 million pounds (approximately Rs 3,480 crore).
Citi Bank, Standard Chartered and ICICI Bank are believed to be funding the acquisition. On August 16, 2006, TOI had reported that the UB Group was eyeing the company.
Once the acquisition goes through, it will be a sweet victory of sorts for Mallya. To start with, it will give him a foothold in the corridors of power at the Scotch Whisky Association.
For long, he has been at loggerheads with the association, in large part because it does not allow Indian companies to sell their whiskies in Europe.
They have always contended that Indian whiskies cannot be called so because they are made out of sugar-based molasses.
English and Scottish distillers on the other hand use cereal. With Whyte & Mackay under Mallya's belt, that debate will have to be buried.
This acquisition will also avenge the setback he suffered while attempting to acquire French champagne maker Taittinger.
In spite of his bid being the most attractive, his offer attained political overtones in a Europe wary of ceding traditional turf to outsiders.
In some sense, the battle was reminiscent of L N Mittalâs woes while attempting to take over Arcelor.
The only difference was that Mittal came out trumps while Mallya was forced to give up and settle for Bouvet-Ladubay, Taittinger's wine making subsidiary.
He paid Euro 15 million for that. Whyte & Mackay is the largest selling scotch brand in Scotland. The companyâs other brands include Isle of Jura Single Malt, Dalmore Scotch, Vladivar Vodka and Glavya liqueur.
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->