Fair trade watchdog Competition Commission of India (CCI) has approved United Spirits’ proposed sale of a distillery in Tamil Nadu to Enrica Enterprises, as the deal does not raise adverse competition concerns.
The deal comprises hiving off all the operations at the unit of United Spirits that manufactures Indian Made Foreign Spirits (IMFS) to Enrica, by way of slump sale on a going concern basis. The unit is located at Poonamallee, Chennai.
Post-deal, Enrica would make certain IMFS brands of United Spirits using technology and know-how and under the trademark of the Vijay Mallya’s led company.
Recently, the Karnataka High Court ruled as void a part of the sale of share of United Spirits (USL), by United Breweries Holdings, to Diageo. The court overturned an order, passed in March by a single-judge Bench in the company court, allowing Vijay Mallya’s UB Holdings to sell a significant part of its stake in USL to Diageo.
