Vijay Mallya, Diageo in $2 bn deal on United Spirits: Report

Vijay Mallya-controlled UB Group and Diageo Plc have agreed on a deal in which the UK-based spirit maker will buy a controlling stake in United Spirits, a Reuters report said, citing an internal memo.

The report pegged the deal value worth over $2 billion.

Under the terms of the deal, Diageo would get a 53.4 per cent stake in United Spirits, but Mallya would remain as chairman and retain a sizable shareholding, the report said.

The Diageo deal would help UB Group chief Vijay Mallya gain access to funds for reviving the fortunes of Kingfisher Airlines.