UB Group Chairman Vijay Mallya has said that the proposed deal between United Spirits and Diageo Plc had received all regulatory approvals.
The deal envisages sale of 53.4 per cent stake in United Spirits to Diageo at a cost over Rs 11,000 crore.
Mallya met the Finance Minister, P Chidambaram, on Tuesday. He said, “CCI (Competition Commission of India) approval has been received. All regulatory approvals have been received. So that’s why it (the deal) is on track.”
The CCI, in an order dated February 26, had approved Diageo’s proposed majority stake purchase in 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.
While granting its approval to the request, the Securities and Exchange Board of India had said that Diageo would have to pay interest of 10 per cent a year for the period of delay to the public shareholders tendering their shares in the open offer.