25th Nov 2013 11:55
LONDON (Alliance News) - UK competition regulator the Office of Fair Trading said its mulling an offer from spirits and alcoholic drinks giant Diageo PLC to sell most of its Whyte & Mackay business in response to competition and pricing concerns for bottled blended Scotch whiskey.
The drinks giant recently bought a controlling stake in United Spirits Limited, after acquiring an additional 14.98% stake in the company. Diageo now holds a controlling 25% interest in the company, for a total purchase consideration of GBP594 million.
The Office of Fair Trading said the merger may lead to possible price rises for bottled blended whisky sold in the UK.
Diageo and United Spirits are both suppliers of blended bottled whisky in the UK, especially to supermarkets and other large retailers.
'We are now considering Diageo's offer to sell the bulk of the Whyte & Mackay business with the exception of two malt distilleries, to address our concerns,' said Chris Walters, OFT Chief Economist and Decision Maker in the case.
Diageo shares were trading 1.2% higher Monday morning, at 1,998.80 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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