UB becomes second largest spirits company globally
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UB becomes second largest spirits company globally

By agencies   |   Tuesday, 22 March 2005, 08:00 Hrs
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MUMBAI: Ending days of speculations, the Bangalore based United Breweries group (makers of McDowell brand) has inked an agreement with Jumbo World Holdings Ltd. to acquire indirect control up to 54.54 percent stake in Shaw Wallace and Company. With this acquisition, UB becomes the second largest spirits and Liquor company in the world.

The deal, worth $300 million ( 1300 crore) will make the UB group an undisputed king in the Indian liquor market with a share of about 50 percent. The Indian liquor market has an annual sale of about 60 million cases.

This deal ends an almost two-decade-old battle in the Indian liquor business when Vijay Mallya, owner of UB Group first set his eyes on acquiring the Shaw Wallace brand. The owner of Shaw Wallace Manu Chhabria was firm on keeping the liquor company within the group but after his death, the company crumbled and Mallya finally got control of the company.

Under this deal the UB Group will also purchase some liquor distribution companies owned by the Chhabria family. “The economics of scale would result in significant cost advantages to the company and variety of choices to the consumers” Mallya said after signing the deal.

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