Diageo set to take over Mallya’s United Spirits in Rs 11,166-cr deal
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However, the completion of the acquisition of shares is subject to the condition of the release of all security interests over the USL shares to be acquired by Diageo. They also include the receipt of mandatory regulatory approvals (including competition approvals) in India and elsewhere. The completion of the acquisition and tender offer is expected to occur in the first quarter of 2013. Diageo will fund the acquisition through existing cash resources and debt. Diageo believes that its financial strength supports its current single A credit rating and will hold discussions with the rating agencies as a consequence of this announcement.
Analysts expressed optimism about the deal. "Some of the Mallya group companies have been in turbulence for some time. This is his final opportunity to revive the fortune of the group," said Jagannadham Thunuguntla, head of research at SMC Investments and Advisors.