Mallya also inked a pact to form a 50:50 joint venture which will own United National Breweries' traditional sorghum beer business in South Africa.
Diageo's investment for its 50 per cent interest in the joint venture is expected to be around USD 36 million, the joint statement said.
"Diageo and Mallya are also considering the possibility of extending this joint venture in order to maximise opportunities which exist in certain emerging markets in Africa and Asia (excluding India)," the companies said.
For the year ended 2011, Diageo's revenues stood at 13.3 billion pounds and its net income stood at 2.01 billion pounds. The company, which is the world's largest spirits maker, sells various popular brands including Smirnoff Vodka and Johnnie Walker whiskey.
On the other hand, Bangalore headquartered USL's revenues stood at Rs 7,659.89 crore for the fiscal ended March 31, 2012. The company posted a net profit of Rs 342.79 crore during the fiscal.
USL is the India's top spirits maker and markets various liquor brands including Signature, Bagpiper, Antiquity, Royal Challenge, Signature in the country.
Mutual Funds Check for top funds
Stocks More on United Spirits Ltd
Company INFO More on United Spirits Ltd