Johnnie Walker owner Diageo gains control of India’s largest spirits company United Spirits

Johnnie Walker owner Diageo has finally gained controlled of India’s largest spirits company in an attempt to pep up sales in the world’s biggest whisky market.



The drinks giant overcame a number of setbacks to secure a 54.78 per cent stake in United Spirits (USL), home to Jura and Bagpiper, off India’s king of bling Vijay Mallya.



As part of the deal its Whyte and Mackay brand has been sold for competition reasons.



Diageo staff member with a bottle of whisky: The firm has finally gained controlled of India's largest spirits company

Vijay Mallya: Diageo overcame a number of setbacks to secure a 54.78 per cent stake in United Spirits (USL) off India's king of bling Mallya

Mallya is the larger-than-life entrepreneur behind Kingfisher beer and Kingfisher Airlines, but some of his businesses have been struggling.



The two parties first held talks about a stake in 2008 but could not agree on a price.



Diageo made an improved offer in November, acquiring 28.78 per cent of the firm but falling short of the majority it needed to subsume the business into Diageo.

It managed to clinch a further 26 per cent yesterday, however its shares slipped 5.50p to 1,897p.

India’s alcoholic drinks market is worth £3.7billion a year and is expanding thanks to an emerging middle class with new-found wealth.



Its spirits market grew at around 12.3 per cent a year for the past five years.

