Diageo, United Spirits deal: All regulatory approvals in place says Vijay Mallya
"CCI (Competition Commission of India) approval has beenreceived. All regulatory approvals have been received. So that's why it (the deal) is on track," Mallya told reporters here after meeting Finance Minister P Chidambaram here.
The CCI in an order dated February 26 had approved Diageo's proposed majority stake purchase in Mallya-led United Spirits, saying the deal would not have adverse impact on competition.
After seeking clarifications and changes four times the fair trade regulator, CCI had ruled that the deal would give a boost to entry of premium brands in alcoholic beverage market.
Diageo Plc had earlier said it would launch its over Rs 5,441-crore open offer to acquire 26 per cent stake United Spirits between January 7, 2013 and January 18, 2013 but the delay in getting CCI nod had made it approach market regulator SEBI requesting it to allow to make the offer only after getting all the requisite regulatory approvals.
While granting its approval to the request, the Securities and Exchange Board of India (SEBI) on its part has said that Diageo will have to pay an interest of 10 per cent per annum for the period of delay to the public shareholders tendering their shares in the open offer.
In a letter dated January 31, 2013 SEBI had said the letters of offer needed to
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