British beverage heavyweight Diageo (NYS: DEO) is in talks to acquire part of India's United Spirits, according to a joint press release issued this morning by both companies. The companies noted, however, that "there is no certainty that these discussions will lead to a transaction."
United Spirits is part of United Breweries Holdings, which also includes Kingfisher Airlines as well as fertilizer and engineering interests. United Spirits Limited has 145 brands, 22 of which sell more than a million cases a year, and enjoys majority market share in India, according to United Breweries' website.
Some industry watchers posit that a deal could provide much-needed cash to help out Kingfisher Airlines. United Spirits' stock surged in Indian trading while Diageo was also trading higher, up nearly 2% by lunchtime Tuesday.
The article Diageo Discussing Deal With India's United Spirits originally appeared on Fool.com.
Fool contributorJohn Divineowns no shares in any of the above companies. You can follow him on Twitter@divinebizkidand on Motley Fool CAPS@TMFDivine.Motley Fool newsletter serviceshave recommended buying shares of Diageo. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.