UB Group and Whyte & Mackay

Since October 2006, the Vijay Mallaya promoted United Breweries group has been negotiating with Glasgow based distillers Whyte & Mackay for a possible acquisition. It had earlier made a bid at GBP 400 million for the company which was not accepted. There were talks that the deal may be settled around GBP 500 million, but the company has now raised the price tag to GBP 600 million.Citigroup is advising Whyte & Mackay while UBS is advising UBGroup on the deal.UBGroup is the largest player in the IMFL (Indian made foreign liqueur) segment and Whyte & Mackay is the seventh-largest Scotch maker in Scotland.UBGroup is interested in taking over Whyte & Mackay as it will help take his global operations to the next level and add value to its business in the Indian market which has recently faced with a number of global players opting to introduce the variety in the Indian market. For example, Diageo, the world’s no. 1 spirits company and the makers of Johnny Walker whiskey has launched its local version of the global brand Haig.The UB Group began its global operations with the acquisition of Bouvet-Ladubay, a wine company in France. This acquisition of champagne major Taittinger’s subsidiary was struck at GBP 400 million. UB Group chairman Vijay Mallya is planning to ship French wine in bulk to India, where it will be blended with Indian-made wines to cater to the growing number of wine drinkers.