Diageo to double its share of spirits market with United Spirits buyout
“It will be bigger than the next four international companies combined (Pernod Ricard, Beam, Brown-Forman and Campari) in volume terms,” said Cunnington in his blog, adding that the deal also showed Diageo's tactical acumen despite its historic strategic shortcomings that made it exit India in 2002 when it was the leading international player ahead of Pernod Ricard. “It showed the ability to play the tactical long game, and rather than strike a deal three years ago, wait until UB Group’s and United Spirits’ debts became too much of a burden,” he said.
India – whose beverage alcohol market is pegged at $6 billion growing 15% annually — will become Diageo's second largest market by net sales after the stake sale. “This is a strategic move that makes our strong business even stronger globally.
The acquisition of the shareholding in USL is a significant milestone in Diageo's strategy to build our presence in the world's fastest growing market. This move enhances our position as the world's leading premium drinks company,” Diageo's chief operating officer Ivan Menezes had said while announcing the deal on Friday. “This transaction will transform Diageo's position in
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