Concerned over Diageo-USL deal impact: UK fair trade watchdog

Feb 08 2014, 04:07 IST
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SummaryAs UK’s fair trade watchdog OFT continues to probe Diageo’s purchase of controlling rights in United Spirits from India's UB group

As UK’s fair trade watchdog OFT continues to probe Diageo’s purchase of controlling rights in United Spirits from India's UB group, the regulator has released a 53-page report detailing concerns posed by this deal to competition in the British whisky market.

The Office of Fair Trading (OFT) had decided on November 25, 2013 to have a fresh look at the $2 billion deal, after Diageo offered to divest bulk of Whyte & Mackay (W&M) business to address anti-competition concerns posed by this merger.

OFT on Thursday made public the ‘‘full text’’ of its November 25 decision, wherein it said that ‘‘the OFT is concerned only by the impact of the transaction’’.

‘‘The focus of the competitive assessment is therefore on the incremental effect on competition of Diageo's shareholding and the control this confers on Diageo.

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