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UK’s regulator launches consultation process for Diageo-United Spirits deal

23 Jul 2013 Evaluate

As a part of standard procedure for all mergers passing through the UK, country’s regulator has launched a consultation process into the merger of Vijay Mallya-owned United Spirits and Diageo, maker of the famed Johnnie Walker whisky, to ensure the deal does not violate any competition rule. Diageo, the owner of popular brands such as Johnnie Walker, Guinness and Smirnoff, has bought 25% stake in United Spirits earlier this month.

The office of fair trading’s (OFT) 'invitation to comment' process, which runs until August 2, is applied to all mergers involving companies in the UK and invites third party representations to analyze their impact.

Meanwhile, for the current case, OFT is considering whether this agreement has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the UK for goods or services. However, if its review raises questions over a possible negative impact of the deal on the spirits market, the case would then be referred to the Competition Commission there to look into possible remedy.

United Spirits Share Price

1386.45 4.20 (0.30%)
24-Apr-2026 11:57 View Price Chart
Peers
Company Name CMP
United Spirits 1386.45
United Breweries 1476.00
Radico Khaitan 3193.40
India Glycols 956.25
Allied Blenders 552.55
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