Diageo agrees to buy 53.4 percent stake in United Spirits

MUMBAI Fri Nov 9, 2012 5:34am EST

A worker walks past the headquarters of Diageo in London, August 27, 2009. REUTERS/Toby Melville

A worker walks past the headquarters of Diageo in London, August 27, 2009.

Credit: Reuters/Toby Melville

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MUMBAI (Reuters) - Diageo Plc (DGE.L) said on Friday it has agreed to buy a 53.4 percent stake in India's United Spirits (UNSP.NS) for 111.67 billion rupees ($2.05 billion).

It will buy a 27.4 percent stake in United Spirits and will launch a mandatory tender offer to buy 26 percent more from the public shareholders of United Spirits, the company said in a statement.

The purchase would be the biggest inbound Indian M&A deal since British oil firm Cairn Energy Plc's (CNE.L) sold a majority stake in its Indian business to Vedanta Resources Plc (VED.L) last year. ($1 = 54.5050 Indian rupees) (Reporting by Sumeet Chatterjee; Editing by Sunil Nair)

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